Question $1$

$2$ pts

On April $1,$ year $8,$ XYZ Company, sold an item of inventory to a customer at a price resulting in gross profit to XYZ$.$ Which of the following statements is true regarding the effect of this transaction on the company's current ratio and quick ratio in year $8?$

Both the current ratio and the quick ratio stay the same.

The current ratio stays the same and the quick ratio increases.

The current ratio increases and the quick ratio stays the same.

Both the current ratio and the quick ratio increase.Question $1$

$2$ pts

On April $1,$ year $8,$ XYZ Company, sold an item of inventory to a customer at a price resulting in gross profit to XYZ$.$ Which of the following statements is true regarding the effect of this transaction on the company's current ratio and quick ratio in year $8?$

Both the current ratio and the quick ratio stay the same.

The current ratio stays the same and the quick ratio increases.

The current ratio increases and the quick ratio stays the same.

Both the current ratio and the quick ratio increase.