Question : Which of the following is the correct formula for "Current Ratio"?
Option 1: Liquid Assets/Current Liabilities
Option 2: Current Assets/Current Liabilities
Option 3: Fixed Assets/Current Assets
Option 4: Liquid Assets/Current Assets
Correct Answer: Current Assets/Current Liabilities
Solution : It is very simple to calculate the current ratio. Simply divide the current assets by the current liabilities of the company. Current Assets/Current Liabilities = Current Ratio Hence option 2 is the correct answer.
Question : ---------------------ratio explains the relationship between current assets and current liabilities of a business.
Question : The Current Liabilities of a Company are Rs.7,00,000. Its current ratio is 3.5: 1 and its acid test ratio is 1.5: 1. The value of Current assets, Liquid assets and Inventories are
Question : Which of the following tells the working capital?
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