Quick ratio is calculated by using the following formula ___________________.

\frac{C a s h + n e a r c a s h + d e b t o r s - I n v e n t o r i e s}{C u r r e n t l i a b i l i t i e s}

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\frac{C a s h + d e b t o r s}{C u r r e n t l i a b i l i t i e s}

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\frac{C a s h}{C u r r e n t l i a b i l i t i e s}

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\frac{C a s h + n e a r c a s h + d e b t o r s}{C u r r e n t a s s e t s}

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Solution

The correct option is A $\frac{C a s h + n e a r c a s h + d e b t o r s - I n v e n t o r i e s}{C u r r e n t l i a b i l i t i e s}$
Quick ratio is calculated by dividing liquid current assets by total current liabilities. Liquid current assets include cash, marketable securities and receivables. Cash includes cash in hand and cash at bank.

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Similar questions

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Debtors as on 1st April, 2017	20,400
Cash received from debtors during the year (as per Cash Book)	60,800
Returns Inward	5,400
Bad Debts	2,400
Debtors as on 31st March, 2018	27,600
Cash Sales (as per Cash Book)	56,800

Cash = Rs. 1,000, Debtors = Rs. 5,000, Inventories = Rs. 4,000, Capital+Liabilities = Rs. 15,000. What is the amount of fixed assets?

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