On the basis of following information, answer the questions:
| Particulars | Amount (₹) |
| Inventory | 1,00,000 |
| Total current assets | 1,60,000 |
| Shareholders funds | 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 |
On the basis of above case, the liquid ratio is:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 0.6:1
Liquid Ratio = Liquid Assets ÷ Current Liabilities, where liquid assets are current assets less inventory.
Liquid assets = ₹1,60,000 − ₹1,00,000 = ₹60,000
Liquid Ratio = ₹60,000 ÷ ₹1,00,000 = 0.6 : 1
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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