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Question
What is a quick ratio?
Solution
The quick ratio gives the proportion of quick assets to current liabilities. It indicates whether the business concern is in a position to pay its current liabilities and when they become due, out of its quick assets.
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RELATED QUESTIONS
Calculate quick ratio: Total current liabilities ₹ 2,40,000; total current assets ₹ 4,50,000; Inventories ₹ 70,000; Prepaid Expenses ₹ 20,000
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- Quick ratio
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Select the correct answer using the codes given below:
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| Particulars | Rs. |
| Revenue from operations | 12,00,000 |
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Following is the extract of balance sheet of Abdul Ltd., as on 31st March, 2019:
| Particulars | Rs. |
| I EQUITY AND LIABILITIES | |
| 1. Shareholders’ Funds | |
| a) Share capital | 2,00,000 |
| b) Reserves and surplus | 50,000 |
| 2. Non-Current liabilities | |
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