Question

Ideal quick ratio is ______.

Options

• 1 : 1

• 1 : 2

• 1 : 3

• 2 : 1

Answer 1

Ideal quick ratio is 1 : 1.

Explanation:

The ideal quick ratio is considered to be 1 : 1, which means quick assets are equal to current liabilities. As per accounting standards, this indicates the firm can meet its short-term obligations without relying on the sale of inventory, reflecting strong short-term financial health.