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    Question

    A company shows the following balance sheet figures (₹

    in crore): Equity 40, Reserves 20, Term Loan 60, Current Assets 80 and Current Liabilities 40. The bank wishes to assess the short-term liquidity position of the borrower based on standard ratio analysis. What is the Current Ratio?
    A 1.25 Correct Answer Incorrect Answer
    B 1.50 Correct Answer Incorrect Answer
    C 2.00 Correct Answer Incorrect Answer
    D 1.75 Correct Answer Incorrect Answer
    E 2.25 Correct Answer Incorrect Answer

    Solution

    Current Ratio = CA / CL = 80 / 40 = 2.00.

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