Which of the following transactions will increase the Current Ratio but will decrease the Debt Equity Ratio?

1. Current Ratio $=\frac{\text{Current Assets}}{\text{Current Liabilities}}$ 2. Debt Equity Ratio $=\frac{\text{Long-term Debt}}{\text{Shareholders’ Funds}}$ When Equity shares are issued for cash:Cash (Current Asset) increases, which increases the Current Ratio (assuming the initial ratio is greater than 1 or if it builds up funds).Shareholders' Funds (Equity) increases while Long-term Debt remains unchanged, which decreases the Debt Equity Ratio.Therefore, Option A satisfies both conditions.