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.

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