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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


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 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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