Question:medium

From the following information obtained from the books of accounts of Ananda Ltd., calculate 'Quick Ratio' of the company: Total Current Assets (including stock and prepaid expenses) ₹ 2,00,000; Stock ₹ 20,000; Prepaid expenses ₹ 10,000; Current liabilities ₹ 1,70,000.

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Quick Ratio (Acid-Test Ratio) = (Current Assets - Stock - Prepaid Expenses) / Current Liabilities
A quick ratio of 1 : 1 is considered satisfactory as it indicates the company can meet its current liabilities from its quick assets.
Updated On: Mar 9, 2026
  • 20 : 17
  • 1 : 1
  • 18 : 17
  • 19 : 17
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The Correct Option is B

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