Question

A company’s Balance Sheet shows the following figures: • Current Assets amounting to ₹12,00,000, which include an Inventory balance of ₹3,00,000. • Current Liabilities are recorded at ₹6,00,000. For the purpose of liquidity assessment, analysts wish to compute the Acid-Test Ratio (Quick Ratio), Which of the following represents the correct Quick Ratio for the company?

A 2.0
B 1.5
C 1.0
D 1.2
E 0.75
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