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
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.
Question : A Company’s Current Ratio is 2: 1; Current Assets are Rs.2,50,000; Inventory is Rs.60,000 and Prepaid Expenses are Rs.5,000. Its Current Liabilities will be:
Question : A firm has a Current Ratio of 3.5: 1 and a Quick Ratio of 2: 1. If its inventory is Rs.75,000, total current assets and total current liabilities are
Question : Quick Ratio 2.5; Current Assets Rs.1,50,000; Current Liabilities Rs.40,000. The Value of Inventory
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