12th Class Accountancy Accounting Ratios Question Bank MCQs - Accounting Ratios

  • question_answer
    Calculate current ratio if current assets are Rs.8,00,000, inventories Rs. 4,00,000, working capital Rs. 4,80,000.

    A) 1:1                   

    B) 2.5:1

    C) 2:1                    

    D) 1:2

    Correct Answer: B

    Solution :

    [b] 2.5 :1
    Hint: Working Capital = Current Assets - Current Liabilities
    4,80,000 = 8,00,000 - Current Liabilities
    Current Liabilities = 8,00,000 - 4,80,000
    Current Ratio =\[\frac{Current Assets}{Current Liabilities}\]= \[\frac{80,000}{3,20,000}\]
    = 2.5 : 1


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