Calculate 'Liquid Ratio' from the following information:

1:1

The correct answer is Option (3) → 1:1 

Liquid Ratio=Liquid Assets / Current Liabilities

Advance Tax = Rs. $5,000$ (Treated as a non-quick asset because it's not available to pay creditors)

Liquid Assets= Current Assets − (Inventories + Prepaid Expenses + Advance Tax) 

                     = 80,000 − (20,000 + 5,000 + 5,000)

                     = 80,000−30,000=50,000

Liquid Ratio=50,000/ 50,000 = 1 :1​