New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    For knowing the cash (liquidity) position of a company

    which of the ratio will be used?   
    A Debt Equity Ratio Correct Answer Incorrect Answer
    B Liquid Ratio Correct Answer Incorrect Answer
    C Capital Ratio Correct Answer Incorrect Answer
    D Quick Ratio Correct Answer Incorrect Answer
    E Fast Ratio Correct Answer Incorrect Answer

    Solution

    The quick ratio is a measure of how well a company can meet its short-term financial liabilities. Also known as the acid-test ratio, it can be calculated as follows: (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.

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