Final answer:
The statement is false. A reduction in accounts receivable affects both the current ratio and the quick ratio because accounts receivable are a component of the calculation for both liquidity ratios.
Step-by-step explanation:
The statement provided says that a reduction in accounts receivable would have no effect on the current ratio, but would lead to an increase in the quick ratio. This statement is false. Both the current ratio and the quick ratio are measures of a company's liquidity and ability to meet its short-term obligations.
The current ratio is calculated as current assets divided by current liabilities, and because accounts receivable are included in current assets, a reduction in accounts receivable would decrease the numerator, potentially lowering the current ratio.
On the other hand, the quick ratio is similar but excludes inventory and other less liquid current assets from the numerator. Since accounts receivable are considered a more liquid asset and are included in the calculation, a reduction in accounts receivable would also decrease the numerator of the quick ratio, which could lead to a decrease, rather than an increase, in the quick ratio.