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
Option 1: 2.5:1
Option 2: 1:2
Option 3: 2.33:1
Option 4: 2:1
Correct Answer: 2:1
Solution : Answer = 2:1
Quick Ratio = Quick Assets / Current liabilities
Q.A = 40000
C.liab = 20,000
Q. Ratio = 40,000/20,000 = 2:1 Hence, the correct option is 4.
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.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?
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