Explanation:

A Company’s liquid assets are Rs 10,00,000 and its current liabilities are Rs 8,00,000. Subsequently, it purchased goods for Rs 1,00,000 on credit.

liquid assets= Rs. 10,00,000

current assets= Rs. 8,00,000 + Rs. 1,00,000=Rs. 9,00,000

quick ratio= liquid assets/ current liabilities

=Rs. 10,00,000/9,00,000

1.11 : 1