The ideal quick ratio is: - Accountancy MCQ CUET Accountancy 2025 22 May Shift 2 2026 | ExamTest.live | ExamTest.live

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The ideal quick ratio is:

A $2:1$
B $1:1$
C $3:1$
D $1:2$

Solution & Step-by-step Explanation

The quick ratio (also known as the Acid Test Ratio or Liquid Ratio) measures a firm's short-term liquidity. An ideal quick ratio is widely benchmarked as 1 : 1, indicating that the firm has exactly 1 Rupee of highly liquid liquid assets available to cover every 1 Rupee of urgent current obligations.

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The ideal quick ratio is:

A

2:1

B

1:1

C

3:1

D

1:2

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Financial Statements Ratios Quick Ratio

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