Question : A Company’s Current Ratio is 2: 1; Current Assets are Rs.2,50,000; Inventory is Rs.60,000 and Prepaid Expenses are Rs.5,000. Its Current Liabilities will be:
Option 1: Rs.1,50,000
Option 2: 1,25,000
Option 3: 1,35,000
Option 4: None of the above
Correct Answer: 1,25,000
Solution : Current Liabilities = 2,50,000; Inventory = 60,000; Prepaid Expenses =5,000; Current Ratio = 2:1 Current Ratio = Current Assets/ Current liability 2:1=2,50,000/Current liability Current liability = 2,50,000/2=1,25,000 Hence option 2 is the correct answer.
Question : Current Assets Rs.5,00,000; Current Liabilities Rs.2,50,000 and Inventory is Rs.60,000. What will be the Liquid Ratio?
Option 1: 2.02:1
Option 2: 2:1
Option 3: 3:1
Question : Quick Ratio 2.5; Current Assets Rs.1,50,000; Current Liabilities Rs.40,000. The Value of Inventory
Option 1: Rs 60,000
Option 2: Rs 40,000
Option 3: Rs 50,000
Option 4: None of the above.
Question : A firm has a Current Ratio of 3.5: 1 and a Quick Ratio of 2: 1. If its inventory is Rs.75,000, total current assets and total current liabilities are
Option 1: Current assets Rs 2,16,000 and current liabilities Rs 48,000
Option 2: Current assets Rs 1,08,000 and current liabilities Rs 24.000
Option 3: Current assets Rs 1,75,000 and current liabilities Rs 50,000
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