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    • Question

      If Current Ratio is 2.5:1 and Working Capital is

      ₹1,50,000, what are Current Assets?
      A ₹2,50,000 Correct Answer Incorrect Answer
      B ₹1,00,000 Correct Answer Incorrect Answer
      C ₹2,00,000 Correct Answer Incorrect Answer
      D ₹1,50,000 Correct Answer Incorrect Answer

      Solution

      Current Ratio = CA/CL = 2.5/1. Working Capital = CA - CL = ₹1,50,000. Let CL = x, then CA = 2.5x. 2.5x - x = 1.5x = ₹1,50,000. So x = ₹1,00,000 (CL), and CA = 2.5 × ₹1,00,000 = ₹2,50,000.

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