Question : Assertion (A): If working capital is Rs. 2,40,000, current assets are Rs. 4,000,00, which includes Rs. 2,000 in inventory. There will be a current ratio of 2.5:1.
Reason (R): Current Ratio = Current Assets/Current Liabilities

Question : Assertion (A): Current Ratio = Current Assets- Stock /Current Liabilities
Reason (R): If current Assets are 5,25,000, including inventory of 2,00,000 (including Loose Tools 75,000) and working capital is 2,25,000, Current Ratio will be 1.5 : 1

Question : Assertion (A): If current Assets are 5,25,000, including inventory of 2,00,000 (including Loose Tools 75,000) and working capital is 2,25,000, Current Ratio will be 1.83 : 1
Reason (R): Current Ratio = Current Assets/Current Liabilities

Question : Assertion (A): Current Assets/Current Liabilities is the formula for calculating the current ratio
Reason (R): The current ratio is derived by dividing current assets by current liabilities. Current assets are made up of spare parts, loose tools, and stores.

Question : Assertion (A): The ratio that results from dividing current assets by current liabilities is known as the liquid ratio.
Reason (R): Liquid Assets/Current Liabilities is the formula for calculating the liquid ratio.