Question

    Direction (14 -17):- Study the Balance Sheet below to answer the questions below:

    Calculate the current Ratio from the above data:

    A 2.6 times Correct Answer Incorrect Answer
    B 2.8 times Correct Answer Incorrect Answer
    C 3.0 times Correct Answer Incorrect Answer
    D 3.4 times Correct Answer Incorrect Answer
    E 3.6 times Correct Answer Incorrect Answer

    Solution

    Current ratio = current assets/current liabilities                         = (inventories + trade receivables + cash) /trade payables                         = (4,00,000 + 9,00,000 + 5,00,000) /5,00,000                         = 3.6 times

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