Based on the following information of a company as at 31 March, 2017, answer the question.
|
Items |
Rs. |
|
Inventory |
1,00,000 |
|
Total Current Assets |
1,60,000 |
|
Shareholders’ Funds |
4,00,000 |
|
13% Debentures |
3,00,000 |
|
Current liabilities |
1,00,000 |
|
Net Profit before Tax |
3,51,000 |
|
Cost of Revenue from operations |
5,00,000 |
Calculate Liquid Assets and Quick Ratio of the Company.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹60,000; 0.6 : 1
Liquid (quick) assets are current assets less inventory.
Liquid Assets = ₹1,60,000 − ₹1,00,000 = ₹60,000
Quick Ratio = Liquid Assets ÷ Current Liabilities
= ₹60,000 ÷ ₹1,00,000 = 0.6 : 1
NCERT (2026-27 edition): NCERT (2026-27 edition):
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