Advertisements
Advertisements
Question
What is an ideal current ratio?
Short Answer
Advertisements
Solution
The ideal current ratio is generally considered to be 2 : 1. This means that a company should have twice as many current assets as current liabilities. A 2 : 1 current ratio indicates that the company’s current assets are sufficient to cover its current liabilities, with a comfortable cushion.
shaalaa.com
Is there an error in this question or solution?
