A company's quick ratio is 1:1, current assets ₹2,00,000, inventory ₹40,000. Current liabilities are: MCQ with Answer and Explanation

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A company's quick ratio is 1:1, current assets ₹2,00,000, inventory ₹40,000. Current liabilities are:

A. ₹1,00,000

B. ₹40,000

C. ₹2,00,000

D. ₹1,60,000

Answer: Option D

Solution (By JKSSB Mock Tests)

Quick assets = Current assets - Inventory = 2,00,000 - 40,000 = 1,60,000. Quick ratio = QA / CL = 1:1, so CL = ₹1,60,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Under the Super Profit method, Goodwill is calculated as:

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Correct Answer: Option D

Explanation:
Super profit is the excess of actual average profit over normal profit. Goodwill is Super Profit multiplied by the agreed number of years' purchase.

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Correct Answer: Option B

Explanation:
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