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Question : Current Assets Rs.5,00,000; Current Liabilities Rs.2,50,000 and Inventory is Rs.60,000. What will be the Liquid Ratio?
Option 1: 2.02:1
Option 2: 2:1
Option 3: 3:1
Option 4: None of the above

Team Careers360 25th Jan, 2024

Answer (1)

Team Careers360 27th Jan, 2024

Correct Answer: 2:1

Solution : Liquid Asset = Current asset excluding inventory = Rs.5,00,000.
Current Liabilities = Rs.2,50,000.
Liquid Ratio= Liquid Asset / Current Liabilities = 5,00,000/2,50,000 = 2:1
Hence option 2 is the correct answer.

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