| A. | Current liabilities |
| B. |
Net income before preference dividend and interest paid
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| C. | Current assets |
| D. | Earning per share |
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Option: B Explanation : Click on Discuss to view users comments. |
| A. | 1, 3 and 5 |
| B. | 2,3, and 4 |
| C. | 1,3, and 4 |
| D. | 2, 4, and 5 |
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Option: A Explanation : Quick ratio is also known as liquid ratio or acid test ratio. Current ratio provides a rough idea of the liquidity of a firm so subsequently a second testing device was developed named as acid test ratio or quick ratio. It establishes relationship between liquid assets and current liabilities. Quick ratio = Liquid (quick) assets / Current Liabilities Click on Discuss to view users comments. VIJYA said: (5:24pm on Monday 5th September 2016)
quick ratio =Q A/'Q LQ A= S D,Q L =B P, LOANS
Rupinder said: (2:06pm on Sunday 6th November 2016)
Sundry debtors is not liability
CHANCHAL said: (8:19pm on Saturday 18th February 2017)
SUNDRY CREDITOR INSTEAD OF SUNDRY DEBTORS
NISHA said: (8:44pm on Wednesday 21st February 2018)
ANSWER SHOULD BE 'D'.. AS LOANS ARE NOT A PART OF CL..
Vikas said: (9:36pm on Tuesday 1st May 2018)
Quick liabilities = b/p creditors only
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| A. | 30 days |
| B. | 60 days |
| C. | 90 days |
| D. | 120 days |
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Option: C Explanation : Click on Discuss to view users comments. shreya said: (4:15pm on Tuesday 12th July 2016)
no.............. its 120 days
DURGA PRASAD MOHAPATRA said: (6:58pm on Thursday 29th June 2017)
yes 90days i.e 360/4=90days
Nagaraj said: (5:06am on Wednesday 25th October 2017)
If it is 90, I think no need collection period. I'm I right???
Vikas sir said: (9:39pm on Tuesday 1st May 2018)
Operating cycle = CA days - CL days In this question = 90 days inventories 30 days collection periods
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| A. | Rs. 600,000 |
| B. | Rs. 1,600,000 |
| C. | Rs. 900,000 |
| D. | Rs. 12,00,000 |
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Option: A Explanation : Click on Discuss to view users comments. |
| A. | Decrease |
| B. | increase |
| C. | Not change |
| D. | Cause fluctuations in |
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Option: A Explanation :
Click on Discuss to view users comments. kishor kumar said: (12:23pm on Sunday 26th June 2016)
reatio will be incereased
pooja sharma said: (12:22am on Friday 15th September 2017)
take an example...like if current assets are 400000 and current liabilities are 200000 , then current ratio will be 2:1 and now if we increase current assets and current liablities by 50000...then current assets will be 450000 and current liabilities will be 250000, then the ratio will be 1.8 : 1
Gautam Sanghpriya said: (11:12pm on Saturday 30th September 2017)
CURRENT ASSETS = 2000CURRENT LIABILITIES = 1000IF THERE IS AN INCREASE IN BOTH OF RS. 1000 IN BOTH, THEN THE AMOUNT WILL BE C.A. = 2000 1000 = 3000C.L . = 1000 1000 = 2000CURRENT RATIO = C.A./C.L. =3000/2000 = 1.5/1 or 3/2 =3:2so there is a decrease in the ratio.
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