Quick ratio is calculated as X-y:z; where?

A. x= stock; y=current assets and z= long-term liabilities
B. x = current assets; y = debtors and z= current liabilities.
C. x=current assets; y= stock and z=current labilities
D. x= debtors; y= stock and z=current assets.

Correct Answer:

Option C – x=current assets; y= stock and z=current labilities