A company has the following Current Assets: Cash ₹40,000, Marketable securities ₹25,000, Debtors ₹20,000 and Inventory ₹18,000. The total current liabilities were ₹65,400 (including the future tax liability of ₹4,800 whi

CS Executive · Cost and Management Accounting · PYQS · June 2019
A company has the following Current Assets: Cash ₹40,000, Marketable securities ₹25,000, Debtors ₹20,000 and Inventory ₹18,000. The total current liabilities were ₹65,400 (including the future tax liability of ₹4,800 which will be made after one year) What will be the quick ratio of the company?
(A) 1.40:1
(B) 1.81:1
(C) 1.57:1
(D) 1.30:1

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Statement Analysis

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