Question

A general insurance company has the following balances: Current Assets = ₹12 lakh, Inventories = ₹2 lakh, Bank overdraft = ₹1.5 lakh, Other Current Liabilities = ₹4.5 lakh. Calculate the Adjusted Quick Ratio (Acid Test Ratio).

A 2.0
B 1.2
C 1.5
D 1.6
E 1.0
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