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Subject - Accounting:

Financial Statement Analysis

MCQ - 278-280

Question:

Assume that a company has current assets of Rs. 60,000, current liabilities of Rs. 35,000 and prepaid expenses of Rs. 5,000. Calculate the quick ratio of the company?

  1. 1.57
  2. 1.71
  3. 1.86
  4. 1.71

Correct Answer: A

Explanation:

Quick ratio = current assets – inventory – prepaid expenses / current liabilities
= 60000 – 5000 / 35000
= 55000 / 35000
= 1.57

Record Performance

355 MCQ for effective preparation of the test of Financial Statement Analysis of Accounting section.

Read the MCQ statement: Assume that a company has current assets of Rs. 60,000, current liabilities of Rs. 35,000 and prepaid expenses of Rs. 5,000. Calculate the quick ratio .... f the company? , keenly and apply the method you have learn through the video lessons for Financial Statement Analysis to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 278-280.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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