At the end of the year, current liabilities of a ﬁrm is €280, current assets is €340 and the inventory is €110.What is the ﬁrms Current and Quick ratios?
A)1.214 and 0.8214
B)0.8235 and 0.5
C)0.3571 and 0.5294
D)1.214 and 0.5294
E)0.3571 and 0.8214

Question

Quizplus · Accepted Answer

Current ratio = Current assets / Current liabilities = 340 / 280 = 1.214Quick ratio = (Current assets - Inventory) / Current liabilities = (340 - 110) / 280 = 0.8214

At the End of the Year, Current Liabilities of a ﬁRm