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      Question

      A company has current assets ₹6,00,000, inventory

      ₹2,50,000, prepaid expenses ₹50,000, and current liabilities ₹3,00,000. Calculate the quick ratio.
      A 1.0 Correct Answer Incorrect Answer
      B 1.33 Correct Answer Incorrect Answer
      C 0.67 Correct Answer Incorrect Answer
      D 1.5 Correct Answer Incorrect Answer
      E 2.0 Correct Answer Incorrect Answer

      Solution

      Quick Ratio = (Current Assets - Inventory - Prepaid Expenses) / Current Liabilities = (₹6,00,000 - ₹2,50,000 - ₹50,000) / ₹3,00,000 = ₹3,00,000 / ₹3,00,000 = 1.0 

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