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<p>(a) Quick . Assets/Quick Liabilities</p> <p>(b) Quick . Liabilities Current Assets</p> <p>(c) Current Assets/ Current Liabilities</p> <p> </p>
Answer (C)
But current assets should be - inventory / Current liabilities
Agreed with Mr.Jamal's answer
Most appropriate answer is Quick Assets / Current Liablities
Quick ratio can be computed as under
Rate similar to the rate of acute liquidity trading except that it provides a more accurate test of short-term liquidity. The prepayments and warehouse spare parts and inventory may not have a high liquidity. For this reason, the current assets less liquid excluded from the numerator. =
Monetary + securities are readily convertible into cash + debits
Current liabilities
Answer the question of health C
