Multiple Choice Questions on A Company rsquo s liquid assets are Rs10 00 000 and its current liabilities are Rs8 00 000 Subsequen........... for Commerce 12th Preparation

Back to Main Page

Multiple Choice Questions

A Company rsquo s liquid assets are Rs10 00 000 and its current liabilities are Rs8 00 000 Subsequen...........

    Download Solution PDF

    A Company’s liquid assets are Rs10,00,000 and its current liabilities are Rs8,00,000. Subsequently, it purchased goods for rs1,00,000 on credit. Quick ratio will be

    1.11 : 1

    Correct Answer

    1.22 : 1

    Incorrect Answer

    1.38 : 1

    Incorrect Answer

    1.25 : 1

    Incorrect Answer
    छोटे Courses बड़े Results
    Master
    Prepare through Micro-courses
    Try Now
    Explanation:

    - The quick ratio is calculated as (Liquid Assets / Current Liabilities).

    - Initially, liquid assets are Rs10,00,000 and liabilities are Rs8,00,000.

    - Quick ratio before purchase = Rs10,00,000 / Rs8,00,000 = 1.25 : 1.

    - Purchase of goods for Rs1,00,000 on credit increases liabilities to Rs9,00,000.

    - New quick ratio = Rs10,00,000 / Rs9,00,000 = 1.11 : 1.

    Option 1: 1.11 : 1 is the correct answer.

    By: santosh
    ProfileResources

    Let's Discuss

    Master
    With abhipedia
    Micro Courses
    Try Now
    What our students have to say
    Review on us
    Download Abhipedia Android App

    Access to prime resources

    Downlod from playstore
    download android app download android app for free