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?
Option 1: 3.2:1
Option 2: 2:1
Option 3: 1.6:1
Option 4: 1.7:1
Correct Answer: 1.6:1
Solution : Liquid Ratio = Cash + Trade Receivables = 7000+73000 = ₹80000 Current Liability = Trade Payable = ₹50,000 Liquid Ratio = Liquid Asset / Current Liability = 80000/50000 =1.6:1 Hence option 3 is the correct answer.
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
Option 1: 2:1
Option 2: 3:1
Option 3: 2.5:1
Option 4: None of the above
Question : Cash Balance Rs.5000; Trade Payable Rs.40000; Inventory Rs.50000; Trade Receivable Rs.65000; and Prepaid expense Rs.10000. Liquid Rratio will be -
Option 1: 2 : 1
Option 2: 3.25 : 1
Option 3: 1.75 : 1
Option 4: 3 : 1
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
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile