Question

    Calculate the Quick ratio based on above information?

    Refer to the following information to answer the next 4 questions (Q11 to Q14)
    A 3.04 Correct Answer Incorrect Answer
    B 2.51 Correct Answer Incorrect Answer
    C 1.48 Correct Answer Incorrect Answer
    D 2.90 Correct Answer Incorrect Answer
    E 3.30 Correct Answer Incorrect Answer

    Solution

    Quick ratio = Quick Assets/Current Liabilities 2,64,000 / 1,05,000 = 2.51   Quick Assets: Debtors + Cash in hand i.e., 2,50,000 + 14,000 = 2,64,000   Current Liabilities: Trade Creditors + Bank Overdraft i.e., 80,000 + 25,000 = 1,05,000

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