Which of the following transaction will increase Current Ratio but will decrease Debt Equity Ratio? Option 1: Issue of Equity shares for cash Option 2: Redemption of 9% preference shares Option 3: Issue of debentures for consideration other than cash Option 4: Issue of debentures for cash

The answer is 'Issue of Equity shares for cash'. View full solution:

CUET Accountancy - Which of the following transaction will increase Current Ratio but will decrease Debt Equity Ratio? | PYQs + Solutions

CUET Accountancy 2022 15 July Shift 2

Financial Statements

Medium

Issue of Equity shares for cash

Redemption of 9% preference shares

Issue of debentures for consideration other than cash

Issue of debentures for cash

✅ Correct Option: 1