12 Views

Question : A Company’s Current Ratio is 3: 1 and Liquid Ratio is 2: 1. If its Current Liabilities are Rs.2,00,000, what will be the value of Inventory?

Option 1: Rs.4,00,000

Option 2: Rs.3,00,000

Option 3: Rs.2,00,000

Option 4: Rs.5,00,000


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Rs.2,00,000


Solution : Current Liabilities = 2,00,000; Inventory = ?;  Current Ratio = 2:1
Current Ratio = Current Assets/ Current liability
3:1=Current Assets/₹2,00,000
Current Assets= 6,00,000
Liquid Ratio = Liquid Assets/Current liability
2:1=Liquid Assets/2,00,000
Liquid Assets = 4,00,000
Stock = 6,00,000 - 4,00,000 = 2,00,000
Hence option 3 is the correct answer.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024) | 30+ Specializations | AI Powered Learning & State-of-the-Art Facilities
Amity University Noida MBA Ad...
Apply
Amongst top 3% universities globally (QS Rankings) | Ranked among top 10 B-Schools in India by multiple publications
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
MAHE Online MBA
Apply
Apply for Online MBA from Manipal Academy of Higher Education (MAHE)
FLAME University | MBA 2026
Apply
NAAC A++ Grade | MBA program graded A** (National) by CRISIL | AACSB, ACBSP and BGA Member
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books