Based on the Below Figures, What Is the Quick Ratio

question 11

Multiple Choice

Based on the below figures, what is the quick ratio?
$\begin{array}{lr}&£ \\\text { Trade payables } & 35,000 \\\text { Trade receivables } & 28,000 \\\text { Cash and cash equivalents } & 15,000 \\\text { Taxation repayable to the company } & 12,000 \\\text { Inventory } & 14,000 \\\text { Accruals } & 6,000\end{array}$

• A) 0.81:1
• B) 1.05:1
• C) 1.34:1
• D) 1.68:1

---

Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, leading to a reduction in the per-unit cost of production as the size of the operation grows.

Product Variety

Refers to the assortment of different goods and services that a firm offers to its customers, highlighting the diversity within a product line.

Welfare Enhancing

Activities, policies, or strategies that contribute to an improvement in the general well-being and quality of life of individuals or communities, often through the provision of public goods or redistribution of resources.

ATC

Average Total Cost; the total cost of production divided by the total output produced.