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    Question

    A borrower shows Current Assets ₹120 crore, Current

    Liabilities ₹80 crore, Inventory ₹70 crore, Receivables ₹40 crore. Stock audit reveals obsolete inventory of ₹20 crore. What is the adjusted Current Ratio?
    A 1.10 Correct Answer Incorrect Answer
    B 1.25 Correct Answer Incorrect Answer
    C 1.40 Correct Answer Incorrect Answer
    D 1.50 Correct Answer Incorrect Answer
    E 1.75 Correct Answer Incorrect Answer

    Solution

    Adjusted CA = 120 – 20 = 100 CR = 100 / 80 = 1.25

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