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    Question

    Trade Payables are ₹50,000, Working Capital is

    ₹18,00,000, and Current Liabilities are ₹6,00,000. Calculate the Current Ratio.
    A 2 : 1 Correct Answer Incorrect Answer
    B 3 : 1 Correct Answer Incorrect Answer
    C 4 : 1 Correct Answer Incorrect Answer
    D 5 : 1 Correct Answer Incorrect Answer
    E 1.5 : 1 Correct Answer Incorrect Answer

    Solution

    The Current Ratio is calculated using the formula: Current Ratio = Current Assets / Current Liabilities Calculation of Current Assets: Working Capital = Current Assets - Current Liabilities Current Assets = Current Liabilities + Working Capital Current Assets = ₹6,00,000 + ₹18,00,000 = ₹24,00,000 Current Liabilities: Given as ₹6,00,000 Current Ratio = ₹24,00,000 / ₹6,00,000 = 4 : 1

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