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Question

ABC Ltd. has current assets of Rs.8 lakh and current liabilities of Rs.5 lakh. It wants to maintain a current ratio of 2:1. How much current liability should it reduce to meet the target, assuming current assets remain constant?

A Rs.3 lakh

B Rs.1 lakh

C Rs.2 lakh

D Rs.6 lakh

E Rs. 1.5 lakh

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