Comprehension:Consider the following account balance particulars of a firm:ParticularsAmount (Rs.)Inventories 50,000 Trade Receivables 50,000 Advance - CUET Accountancy MCQ CUET Accountancy 2025 13 May Shift 1 2026 | ExamTest.live

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Comprehension:Consider the following account balance particulars of a firm:ParticularsAmount (Rs.)Inventories 50, 000 Trade Receivables 50, 000 Advance Tax 4, 000 Cash and Cash Equivalents 30, 000 Trade Payables 1, 00, 000 Bank overdraft 4, 000 Question: Quick Ratio (Liquid Ratio) of the firm is:

Solution & Step-by-step Explanation

The formula for Quick Ratio is: Quick Ratio = \frac{Quick Assets}{Current Liabilities} From previous intermediate steps: Quick Assets = Trade Receivables + Cash & Cash Equivalents = 50, 000 + 30, 000 = Rs. 80, 000 Current Liabilities = Trade Payables + Bank Overdraft = 1, 00, 000 + 4, 000 = Rs. 1, 04, 000 Calculate the ratio: Quick Ratio = \frac{80 , 000}{1 , 04 , 000} = \frac{80}{104} = \frac{10}{13} \approx 0.769 : 1 ⟹ 0.77 : 1

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Comprehension:Consider the following account balance particulars of a firm:ParticularsAmount (Rs.)Inventories 50, 000 Trade Receivables 50, 000 Advance Tax 4, 000 Cash and Cash Equivalents 30, 000 Trade Payables 1, 00, 000 Bank overdraft 4, 000 Question: Quick Ratio (Liquid Ratio) of the firm is:

1 : 1

0.84 : 1

0.77 : 1

0.8 : 1

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