Question : Statement 1: Current Ratio of 2:1 is considered an Ideal Ratio.
Statement 2: Quick Ratio of 1:1 is considered an Ideal Ratio.
Option 1:
Statement 1 is correct, Statement 2 is wrong
Option 2: Statement 2 is correct, and Statement 1 is wrong
Option 3:
Both Statements are correct
Option 4: Both Statements are wrong
Correct Answer:
Solution : Current Ratio of 2:1 is considered an ideal ratio and Quick Ratio of 1:1 is considered an ideal ratio. Hence, the correct ratio is option 3.
Question :
Quick Ratio 1:1.Current Assets Rs 60,000, Current liabilities Rs 40,000. Calculate the value of inventory.
The enzymes are basically;
Question : Choose the correct statement
Statement 1: In order to interpret financial statements in a useful way, ratio analysis involves a comparison that provides a good interpretation of the financial statement. Statement 2: An individual ratio by itself cannot determine
Question : The Current Ratio of a company is 2:1. State, that the following transaction would improve, reduce or alter the current ratio.
Issue of new shares against the purchase of fixed assets.
The colour of the eye depends upon the pigment present in:
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