Question

How is the Quick Ratio computed in financial management?

a.

(Cash and Bank Balances + Current Liabilities) / Current Assets

b.

Current Assets / Current Liabilities

c.

Current Assets - Stock / Current Liabilities

d.

Current Assets / (Current Liabilities + Stock)

Answer: (c).Current Assets - Stock / Current Liabilities Explanation:The Quick Ratio is computed as (Current Assets - Stock) / Current Liabilities in the process of assessing liquidity.

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Q. How is the Quick Ratio computed in financial management?

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