Which of the following transactions will improve the Current Ratio :a.Credit purchase of Goodsb.Cash Collected from Trade Receivablesc.Payment to Trade Payablesd.Purchase of goods for cash

To determine which of the transactions will improve the Current Ratio, let's first understand what the Current Ratio is. The Current Ratio is a financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets. It is calculated by dividing the company's current assets by its current liabilities.

a. Credit purchase of Goods: This transaction involves purchasing goods on credit, which increases the company's current liabilities. Since the current liabilities increase without a corresponding increase in current assets, this transaction will not improve the Current Ratio.

b. Cash Collected from Trade Receivables: This transaction involves collecting cash from customers who owe the company money. It increases the company's cash, which is a current asset. Since there is an increase in current assets without a corresponding increase in current liabilities, this transaction will improve the Current Ratio.

c. Payment to Trade Payables: This transaction involves making a payment to suppliers or vendors for goods or services received. It reduces the company's current liabilities. Since the current liabilities decrease without a corresponding decrease in current assets, this transaction will improve the Current Ratio.

d. Purchase of goods for cash: This transaction involves purchasing goods and paying for them in cash. It reduces the company's cash, which is a current asset. Since there is a decrease in current assets without a corresponding decrease in current liabilities, this transaction will not improve the Current Ratio.

In summary, the transactions that will improve the Current Ratio are b. Cash Collected from Trade Receivables and c. Payment to Trade Payables.