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
Answer (1)
20th 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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