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what is the working formula for Quick ratio
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Answer / vijay007in
Liquid or Quick or Acid Test Ratio =
( Current assets - Stock - Prepaid Expenses)/(Current
Liabilities - Bank Overdraft - Prereceived Income)
| Is This Answer Correct ? | 5 Yes | 2 No |
Answer / neerajkumar.che
Hello freind,
Quick ratio or Acid test ratio is conservative way to
measure the liquidity of a company.
Quick Ratio=(Current Asset- Inventories)/current Liablities
Inventories are exclude in case as inventories are slow
moving current asset or it may be obselete or it could be
pledged to others.So we exlude to get more refined
liquidity position of company.Sometime we also exclude
prepayment as prepayment is ment for next financial year
and has no significance at date as liquidity is concerned.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / hunny gupta
Quick ratio or Acid test ratio=Liquid assets/Current liabilities
Liquid assets=Current assets-Stock & Prepaid expenses
| Is This Answer Correct ? | 0 Yes | 0 No |
Quick Ratio = Current Assets-stock in hand/Current
Libilities
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / kiran
Quick Ratio : Current Assets - Stock / Current Liabilities.
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / appu
Quick assets/current liabilities
quick assets= cash & debtors
| Is This Answer Correct ? | 0 Yes | 1 No |
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