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Question : Cash balance Rs. 5000. Trade payable Rs. 40,000. Inventory Rs. 50,000. Trade receivable Rs. 60,000. Prepaid expenses Rs. 5,000, Current ratio will be 

Option 1: 2:1

Option 2: 3:1

Option 3: 2.5:1

Option 4: None of the above


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: 3:1


Solution : Answer = 3:1

C. Ratio = CA/C.liaB. = 1,20,000/40,000

= 3:1

C. Assets = 5000+50000+60000+5000

= 1,20,000

C. liaB      = 40,000
Hence, the correct option is 2.

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