You are given the following information by P Company : | ₹ Cash | 12,00,000 Debtors | 3,00,000 Stock | 4,00,000 Prepaid Expenses | 50,000 Creditors | 2,00,000 Bills Payable | 50,000 Acid-test ratio is :

CS Executive · Cost and Management Accounting · PYQS · December 2020
You are given the following information by P Company : | ₹ Cash | 12,00,000 Debtors | 3,00,000 Stock | 4,00,000 Prepaid Expenses | 50,000 Creditors | 2,00,000 Bills Payable | 50,000 Acid-test ratio is :
(A) 6.2 times
(B) 7.8 times
(C) 7.6 times
(D) 6 times

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Analysis

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