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    Question

    A company shows Current Assets ₹150 crore and Current

    Liabilities ₹90 crore. Audit reveals obsolete stock ₹20 crore and doubtful debtors ₹10 crore. What is the Adjusted Current Ratio?
    A 1.25 Correct Answer Incorrect Answer
    B 1.30 Correct Answer Incorrect Answer
    C 1.40 Correct Answer Incorrect Answer
    D 1.50 Correct Answer Incorrect Answer
    E 1.60 Correct Answer Incorrect Answer

    Solution

    Adjusted CA = 150 – 20 – 10 = 120 CR = 120 / 90 = 1.33 ≈ 1.30 (policy rounding)

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