Question

A Company’s Liquid Assets are ₹ 6,00,000, Inventory is ₹ 1,50,000 and its Current Liabilities are ₹ 4,00,000. Subsequently, it purchased goods for ₹ 1,00,000 on credit. Quick Ratio will be ______.

पर्याय

• 1.5 : 1

• 1.2 : 1

• 1.4 : 1

• 1.7 : 1

Answer 1

A Company’s Liquid Assets are ₹ 6,00,000, Inventory is ₹ 1,50,000 and its Current Liabilities are ₹ 4,00,000. Subsequently, it purchased goods for ₹ 1,00,000 on credit. Quick Ratio will be 1.2 : 1.

Explanation:

Liquid Assets = ₹ 6,00,000

Current Liabilities = ₹ 4,00,000

After purchased goods for ₹ 1,00,000 on credit,

Current Liabilities = 4,00,000 + 1,00,000

= ₹ 5,00,000

Quick Ratio = `"Liquid Assets"/"Current Liabilities"`

= `(6,00,000)/(5,00,000)`

= 1.2 : 1