Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

What will be the current liabilities of the company if its current assets are ₹29745 and the current ratio is 1.5:1, and inventories are ₹8827?

Options:

₹19380

₹13980

₹20918

₹19830

Correct Answer:

₹19830

Explanation:

Current ratio= current assets / current liabilities
             1.5:1     = 29745/ current liabiltites
Current liabilities = 29745/1.5
                          = ₹19830