n NISM Certifications
XV NISM Series XV
Medium

A company has current liabilities of ₹33,000, inventory of ₹13,000, and a current ratio of 3. What is the quick ratio?

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    2.1

  2. B

    3.7

  3. 2.6

    Correct answer

  4. D

    3.2

Why this is the answer

Current Assets = Current Ratio × Current Liabilities = 3 × 33,000 = 99,000. Quick Ratio = (Current Assets − Inventory) ÷ Current Liabilities = (99,000 − 13,000) ÷ 33,000 = 2.6.

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