Question : A Firm's Current Assets are Rs.8,00,000 and working capital is Rs.4,00,000. What will be its current ratio?
Option 1: 3:1
Option 2: 2:1
Option 3: 1:2
Option 4: 4:1
Answer (1)
17th Jan, 2024
Correct Answer: 2:1
Solution :
Working capital = Current Assets - Current Liability
4,00,000 = 8,00,000 - Current Liability
Current Liability = 4,00,000
Current ratio = 8,00,000/4,00,000=2:1
Hence option 2 is the correct answer.
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