Question

    Refer to the following information to answer the next 4 questions (Q1 to Q4)

    What will be the quick ratio of the company as per above information?

    A 1.00 Correct Answer Incorrect Answer
    B 1.29 Correct Answer Incorrect Answer
    C 1.43 Correct Answer Incorrect Answer
    D 1.50 Correct Answer Incorrect Answer
    E 1.67 Correct Answer Incorrect Answer

    Solution

    Quick Ratio = Quick assets/current liabilities   Quick assets = Current assets - stock                         = 40,000 - 12,000                         = 28,000   Current liabilities = 28,000 (as solved in Q1)   Quick Ratio = 28,000/28,000                         = 1.00

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