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Question
Following particulars are related to X Ltd.
| Particulars | ₹ |
| Inventory | 1,20,000 |
| Trade Receivables | 70,000 |
| Goodwill | 1,10,000 |
| Cash and Cash Equivalents | 30,000 |
| Current Liabilities (including Outstanding Expenses ₹ 10,000) | 1,10,000 |
Current Ratio will be:
Options
2.2 : 1
3 : 1
2 : 1
3.3 : 1
MCQ
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Solution
2 : 1
Explanation:
Current Ratio = `"Current Assets"/"Current Liabilities"`
Current Assets = Inventory + Trade Receivables + Cash and Cash Equivalents
= 1,20,000 + 70,000 + 30,000
= ₹ 2,20,000
Current Liabilities = ₹ 1,10,000
Current Ratio = `(2,20,000)/(1,10,000)`
= 2 : 1
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