Calculate Current Ratio from the following given information.Liquid Ratio 0.75 : 1 Current Liabilities Rs. 1,80,000Prepaid Expenses Rs. 20,000Inventor - Accountancy MCQ CUET Accountancy 2022 20 July Shift 1 2026 | ExamTest.live

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1 mark

Calculate Current Ratio from the following given information.Liquid Ratio 0.75 : 1 Current Liabilities Rs. 1,80,000Prepaid Expenses Rs. 20,000Inventory Rs. 47,250

Solution & Step-by-step Explanation

Liquid Ratio = \frac{Liquid Assets}{Current Liabilities} = 0.75 .Liquid Assets = 0.75 \times 1, 80, 000 = 1, 35, 000 .Current Assets = Liquid Assets + Inventory + Prepaid ExpensesCurrent Assets = 1, 35, 000 + 47, 250 + 20, 000 = 2, 02, 250 .Current Ratio = \frac{Current Assets}{Current Liabilities} = \frac{2 , 02 , 250}{1 , 80 , 000} = 1.1236 \approx 1.12 : 1 .

Try it yourself before checking the explanation above.

Calculate Current Ratio from the following given information.Liquid Ratio 0.75 : 1 Current Liabilities Rs. 1,80,000Prepaid Expenses Rs. 20,000Inventory Rs. 47,250

2 : 1

1.25 : 1

0.38 : 1

1.12 : 1

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