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    Question

    If Current Assets are ₹10,00,000, Inventory is

    ₹4,00,000, and Current Liabilities are ₹5,00,000, the Quick Ratio is:
    A 2:1 Correct Answer Incorrect Answer
    B 1.2:1 Correct Answer Incorrect Answer
    C 1.5:1 Correct Answer Incorrect Answer
    D 0.8:1 Correct Answer Incorrect Answer

    Solution

    Quick Ratio = (Current Assets – Inventory) / Current Liabilities = (10,00,000 – 4,00,000) / 5,00,000 = 6,00,000 / 5,00,000 = 1.2 : 1.

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