ratio = Quick Assets / Current Liabilities

Current

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Liquid

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Debt-equity

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Inventory

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Solution

The correct option is B Liquid
Liquid ratio = Quick Assets / Current Liabilities.
Quick assets include all current assets except inventories and prepaid expenses.
Current liabilities include trade payables, short-term borrowings, short-term provision, etc.

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ratio = Quick Assets / Current Liabilities

The correct option is B LiquidLiquid ratio = Quick Assets / Current Liabilities. Quick assets include all current assets except inventories and prepaid expenses. Current liabilities include trade payables, short-term borrowings, short-term provision, etc.

The correct option is B Liquid
Liquid ratio = Quick Assets / Current Liabilities.
Quick assets include all current assets except inventories and prepaid expenses.
Current liabilities include trade payables, short-term borrowings, short-term provision, etc.