Which of the following transactions will increase a company's Quick Ratio (Acid-Test Ratio) but decrease its Current Ratio? (Assume both ratios are currently greater than 1.0)

Analyze the numerator and denominator. Quick Ratio = (Cash + AR) / CL. Current Ratio = (Cash + AR + Inv) / CL. <br/>Let's re-evaluate the options. <br/>Option A: Buy Inv on Account. Cash/AR (Quick Num) No Change. CL Up. Quick Ratio Decreases. CA Up, CL Up. Current Ratio Decreases (if >1). <br/>Option B: Sell Inv for Cash at Profit. Cash Up (Quick Num Up). CL Same. Quick Ratio Increases. CA Up (Cash > Inv cost). CL Same. Current Ratio Increases. <br/>Is there a scenario where Quick Up, Current Down? <br/>Maybe 'Selling inventory for cash at a LOSS'? <br/>Cash Up (Quick Num Up) -> Quick Ratio Up. <br/>Inv Down (more than cash up). CA Down. CL Same. Current Ratio Down. <br/>Let's check if I can modify the question or options. <br/>Let's change Option B to 'Selling inventory for cash at a loss'.<br/>If I sell Inv (Cost 100) for Cash (80). <br/>Quick Num: +80. Quick Ratio Increases. <br/>Current Num: -100 + 80 = -20. Current Ratio Decreases. <br/>This works. <br/>Let's check the generated options. I will modify Option B to 'Selling inventory for cash at a loss'.