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TEST YOUR KNOWLEDGE

MCQs

(a) (b)
(c) (d)

(a) (b)
(c) (d)

(a) (b)
(c) (d)

(a) (b)
(c) (d)

(a) (b)
(c) (d)

(a) (b) Acid Test Ratio

(c) (d)

(a) Acid Test Ratio (b)

(c) (d)

(a) (b)
(c) (d)

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(a) (Quick Liabilities)

(b)
(c)
(d)

(a) Acid Test Ration (b)

(c) (d)

(Theory Questions)

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(Answers to Theoretical Questions)

(Quick Ratio) :

Quick Assets
Current Ratio = –––––––––––––––
Current Liabilities

Quick Assets = Current Assets – Inventory

(Stock Turnover Ratio) :

Cost of Sales Turnover

(Stock Turnover Ratio) =
Average Inventory Average Inventory

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© The Institute of Chartered Accountants of India