Current Assets Rs4,00,000; Current Liabilities Rs2,00,000 and Inventory is Rs50,000. Liquid Ratio will be :
Answer & explanation
Correct answer: option 4
Liquid assets = Current Assets Rs4,00,000- and Inventory is Rs50,000
= 350000
Current Liabilities = Rs2,00,000
Liquid Ratio= 350,000/2,00,000
=1.75:1