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    Question

    A company has current liabilities of ₹5 lakh and

    current assets of ₹6 lakh. Inventory is ₹2 lakh. What is the quick ratio?
    A 1.2 Correct Answer Incorrect Answer
    B 0.8 Correct Answer Incorrect Answer
    C 0.6 Correct Answer Incorrect Answer
    D 1.0 Correct Answer Incorrect Answer

    Solution

    Quick Ratio = (CA – Inventory) / CL = (6 – 2) / 5 = 0.8

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