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      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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