Question
If Current Assets are ₹10,00,000, Inventory is
₹4,00,000, and Current Liabilities are ₹5,00,000, the Quick Ratio is: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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