Which of the following is the most desirable quick ratio?

Answer

3. The most dersirable quick ratio is:

c) 1

Quick ratio is a acid test ratio which measures if the company
has enough current assets to pay for its immediate liabilities.
This ratio should ideally be more than 1 becuase a ratio less than
1 means the current assets are less than the immediate obligations
and hence the company will not be able to pay for it. A very high
ratio is also not desirable becuase it means the company has idle
cash which is not being used for reinvestment or returns to
shareholders. Moreover, the ideal ratio varies from industry to
industry.

4) A current liability is a debt that is reasonably expected to
be paid

d. within one year

current liabilities are liabilities which should be paid within
12 months or a year. most common types of current liabilites
include accounts payable, salary payable, notes payable, short term
debt.