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Liquidity ratios - class-XII
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Which of the following items is not taken into account while computing quick ratio?
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A
Bank overdraft
💡 Explanation:
The quick ratio is a financial ratio used to gauge a company's liquidity. The quick ratio is also known as the acid test ratio. The quick ratio compares the total amount of cash and cash equivalents + marketable securities + accounts receivable to the amount of current liabilities.