Question : Inventory is excluded from liquid assets because :

Option 1: there is uncertainty whether it will be sold or not and at what price it will be sold;

Option 2: it will take time before it is converted into trade receivables and cash.

Option 3: Both 1 and 2

Option 4: Neither 1 nor 2

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

Question : Working Capital Rs.4,50,000; Current Assets Rs.6,00,000; Inventory Rs.4,00,000 and Trade Receivables Rs. 1,50,000. Current ratio will be

Option 1: 2:1

Option 2: 3:1

Option 3: 4:1

Option 4: None of the above

Question : Working Capital Rs.4,50,000; Current Assets Rs.6,00,000; Inventory Rs.4,00,000 and Trade Receivables Rs. 1,50,000. Current ratio will be

Option 1: 2:1

Option 2: 3:1

Option 3: 4:1

Option 4: None of the above

Question : Cash Balance Rs.28,000; Trade Receivables Rs.47,000; Inventory Rs.45,000; Trade Payable Rs.34,000 and Bank Overdraft is Rs.6,000. What will be the Current Ratio?

Option 1: 3:1

Option 2: 2:1

Option 3: 4:1

Option 4: 5:1