Question

Following are the Current Assets and Current Liabilities of PQR Ltd.
Current Assets
Cash 2,400; Accounts Receivable 12,000; Stock * 16,000; Prepaid Expense
* 600.
Current Liabilities
Accounts Payable * 11,600; Bills Payable 600; Creditors *1,800.
Calculate Quick Ratio.​

Answer 1

quick ratio=current asset/current liability

=current asset =2400+12000+16000+600

=31000

=current liability=11600+600+1800

=14000

=31000/14000