Question:
If Current Assets are \( \₹ 1,20,000 \) and Current Liabilities are \( \₹ 60,000 \), then Current Ratio will be:
If Current Assets are \( \₹ 1,20,000 \) and Current Liabilities are \( \₹ 60,000 \), then Current Ratio will be:
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An ideal current ratio is generally considered as \(2:1\).
Updated On: May 31, 2026
- \(1:1\)
- \(2:1\)
- \(3:1\)
- \(4:1\)
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The Correct Option is B
Solution and Explanation
Concept:
Current Ratio measures short-term solvency.
\[
\text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}}
\]
Step 1: Substitute the values.
\[ \text{Current Ratio} = \frac{1,20,000}{60,000} \] \[ = 2:1 \] Hence, \[ \boxed{2:1} \]
Step 1: Substitute the values.
\[ \text{Current Ratio} = \frac{1,20,000}{60,000} \] \[ = 2:1 \] Hence, \[ \boxed{2:1} \]
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