Liquidity ratiosForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Liquidity ratiosThis topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts January 8, 2017 at 1:32 pm #365625 julietariMemberTopics: 1Replies: 0☆When a person sold an inventory on a credit basis are not recievable supposed to increase at the same amount of the inventory sold, what is the reason for increase in both current asset and quick ratios, is it not suppose not to change January 8, 2017 at 2:01 pm #365629 John MoffatKeymasterTopics: 56Replies: 53820☆☆☆☆☆Inventory is valued at cost not at the selling price (which will be higher).So receivables increase by more than the fall in inventory.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In