Question : Which of the following is correct for the Liquid Assets :
(A) Current Assets – Prepaid Expense.
(B) Current Assets – Inventory – Prepaid Expense. 

Option 1: Option A Correct

Option 2: Option B Correct

Option 3: Both are correct

Option 4: None of the above

Question : Which of the following statements is incorrect?

Option 1: The quick ratio indicates whether the firm is in a position to pay its current liabilities within a month or immediately.

Option 2: The quick ratio is calculated by dividing liquid assets (Quick Current Assets) by current liabilities.

Option 3: 'Liquid assets' means those assets which will be converted into cash and cash equivalents very shortly.

Option 4: None of the above

Question : Which of the following statements is incorrect?

Option 1: The quick ratio indicates whether the firm is in a position to pay its current liabilities within a month or immediately.

Option 2: The quick ratio is calculated by dividing liquid assets (Quick Current Assets) by current liabilities.

Option 3: 'Liquid assets' means those assets which will be converted into cash and cash equivalents very shortly.

Option 4: None of the above

Question : Which of the following statements is the correct answer?
A: Liquid Assets included stock as well as prepaid expenses.
B: Current Assets included stock as well as prepaid expenses.

Option 1: Option A

Option 2: Option B

Option 3: Both of the above

Option 4: None of the above

Question : Which of the following is the correct formula for "Current Ratio"?

Option 1: Liquid Assets/Current Liabilities

Option 2: Current Assets/Current Liabilities

Option 3: Fixed Assets/Current Assets

Option 4: Liquid Assets/Current Assets