Question : Which of the following ratios is also known as the working capital ratio?
Option 1: Liquid ratio
Option 2: Current ratio
Option 3: Debt-Equity ratio
Option 4: None of the above

Question

Question : Which of the following ratios is also known as the working capital ratio?

Option 1: Liquid ratio

Option 2: Current ratio

Option 3: Debt-Equity ratio

Option 4: None of the above

Team Careers360 · Accepted Answer

Correct Answer: Current ratio

Solution : To calculate the working capital ratio, divide total current assets by total current liabilities. As a result, it's also referred to as the current ratio.
Option 2 is the correct answer.

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Question : Which of the following ratios is also known as the working capital ratio?Option 1: Liquid ratioOption 2: Current ratioOption 3: Debt-Equity ratioOption 4: None of the above

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Question : Which of the following ratios is also known as the working capital ratio?
Option 1: Liquid ratio
Option 2: Current ratio
Option 3: Debt-Equity ratio
Option 4: None of the above

Question : Equity Share Capital Rs.4,00,000; General Reserve Rs.2,40,000;Debentures Rs.3,20,000; Current Liabilities Rs.80,000
On the above information find out the Debt-Equity Ratio.