Quick ratio - doubt? help urgent

only current liabilities to be used to find the quick ratio. Not quick liabilities

both forumalas are correct , u can use according to ur use , answer wil be different in both formulas but wil be correct

See upto 12th class what we  studied was current liablities

But ,in reality as well as CA syllabus we should use quick liabilites/liquid liabilities

QUICK LIABILITIES = CURRENT LIABILITIES (-) BANK OD (-) CASH CREDITS

The reason being that we need to find out Quick Ratio which itserlf means "ABILITY OF A FIRM TO MEET ITS IMMEDIATE LIABILITIES" and bank o/d and cash credit always fluctuating i.e. they remain throughout the year.

the main difference between quick ratio and current ratio is quick liabilities in case of quick ratio quick liabilities are used whereas in current ratio current liabilities are used

quick liabilities=current liabilities-bank overdraft

as it is not to be paid immediately