2. Questions Bank
  3. 12th Class
  4. Accountancy
  5. Accounting Ratios

12th Class Accountancy Accounting Ratios Question Bank MCQs - Accounting Ratios

  • question_answer
    A company's quick ratio is 1.5 : 1; current liabilities are Rs. 2,00,000 and inventory is Rs. 1,80,000. Current ratio will be:

    A) 0.9 : 1

    B) 1.9 : 1

    C) 1.4 : 1               

    D) 2.4 : 1

    Correct Answer: D

    Solution :

    [d] 2.4 : 1
    Hint: Quick Ratio = \[\frac{Quick\,Assets}{Current\,Liabilities}\]
                             \[\frac{1.5}{1}=\frac{\operatorname{QA}}{2,00,000}\]
    QA = Rs. 3,00,000
    Current Ratio =\[\frac{Current\,Assets}{Current\,Liabilities}\]
         =  \[\frac{3,00,000+1,80,000}{2,00,000}\] = 2.4 : 1


You need to login to perform this action.
You will be redirected in 3 sec spinner