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Question : Current Assets Rs.5,50,000; Current Liabilities Rs.2,00,000 and Inventory is Rs.1,50,000. The liquid Ratio will be :

Option 1: 2:1

Option 2: 2.75:1

Option 3: 1:1

Option 4: 3:1


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: 2:1


Solution : Liquid asset = Current asset - Stock =550000-150000=400000
Current liability = 200000

Liquidity Ratio = Current Asset/Current Liability = 400000 / 200000 = 2:1
Hence option 1 is the correct answer.

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