What will be the Current Ratio of Compan

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Based on following information of a company as at 31 March, 2017. Answer question.

Items	Amount (Rs.)
Inventory	1,00,000
Total Current Assets	1,60,000
Shareholders Fund	4,00,000
13% Debentures	3,00,000
Current liabilities	1,00,000
Net Profit before Tax	3,51,000
Cost of Revenue from operations	5,00,000

What will be the Current Ratio of Company?

Options:

16 times

2.6 : 1

2 : 1

1.6 : 1

Correct Answer:

1.6 : 1

Explanation:

The correct answer is Option (4) → 1.6 : 1

Current Ratio = Current Assets / Current Liabilities
= 1,60,000 / 1,00,000
= 1.6 : 1