Question : Cash Balance Rs.7,000; Trade Payable Rs.50,000; Inventory Rs.60,000; Trade Receivables Rs.73,000 and Prepaid Expenses are Rs.20,000. What will be the Liquid Ratio?
Option 1: 3.2:1
Option 2: 2:1
Option 3: 1.6:1
Option 4: 1.7:1
Correct Answer: 1.6:1
Solution : Liquid Ratio = Cash + Trade Receivables = 7000+73000 = ₹80000 Current Liability = Trade Payable = ₹50,000 Liquid Ratio = Liquid Asset / Current Liability = 80000/50000 =1.6:1 Hence option 3 is the correct answer.
Question : Cash balance Rs. 5000. Trade payable Rs. 40,000. Inventory Rs. 50,000. Trade receivable Rs. 60,000. Prepaid expenses Rs. 5,000, Current ratio will be
Question : Cash Balance Rs.5000; Trade Payable Rs.40000; Inventory Rs.50000; Trade Receivable Rs.65000; and Prepaid expense Rs.10000. Liquid Rratio will be -
Question : Trade receivable Rs. 40,000. Trade payable Rs. 20,000. Prepaid expenses Rs. 10,000. Inventory is Rs. 1,00,000 and goodwill is Rs. 15,000. The quick ratio will be
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile