📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    ⚡ Month End Offer - Flat 52% Off On All Courses! Enroll Now ⚡
    00:00:00 AM Left

    Question

    A company has current assets worth ₹6,00,000 and

    current liabilities worth ₹3,00,000. What is its current ratio?
    A 0.5 Correct Answer Incorrect Answer
    B 1.0 Correct Answer Incorrect Answer
    C 1.5 Correct Answer Incorrect Answer
    D 2.0 Correct Answer Incorrect Answer
    E 2.5 Correct Answer Incorrect Answer

    Solution

    The Current Ratio = Current Assets / Current Liabilities = ₹6,00,000 / ₹3,00,000 = 2.0 This means the firm has twice the assets needed to cover its short-term debts — a sign of strong short-term financial health.

    Practice Next
    ask-question