Question : The Current Ratio of a company is 2:1 . State, that the following transaction would improve, reduce or alter the current ratio.
Purchasing goods on credit.
Option 1: Improve
Option 2: Reduce
Option 3:
Alter
Option 4:
None of the above
Correct Answer: Reduce
Solution : Suppose, a good for Rs 50,000 is purchased on a credit basis. Current Assets = Rs.2,00,000 + Rs.50,000 = Rs.2,50,000. Current Liabilities = Rs.1,00,000 + Rs.50,000 = Rs.1,50,000. Current Ratio = Current Assets/Current Liabilities = Rs.2,50,000/Rs.1,50,000 = 1.67:1. Hence, the correct ratio is option 2.
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.
Question :
Quick Ratio 1:1.Current Assets Rs 60,000, Current liabilities Rs 40,000. Calculate the value of inventory.
Question : Who manages the affairs of the company on the behalf of shareholders?
Question : All the affairs of the company are governed by the provisions of the______.
The colour of the eye depends upon the pigment present in:
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile