Consider the following financial metrics of a firm:Total Assets = Rs. 3,00,000 Non-current Liabilities = Rs. 80,000 Shareholders' Fund = Rs. 2,00,000 - CUET Accountancy MCQ CUET Accountancy 2025 13 May Shift 1 2026 | ExamTest.live

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Consider the following financial metrics of a firm:Total Assets = Rs. 3, 00, 000 Non-current Liabilities = Rs. 80, 000 Shareholders' Fund = Rs. 2, 00, 000 Fixed Assets = Rs. 1, 60, 000 Non-current Investments = Rs. 1, 00, 000 The Current Ratio of the firm is:

Solution & Step-by-step Explanation

The formula for Current Ratio is: Current Ratio = \frac{Current Assets}{Current Liabilities} Step 1: Calculate Current AssetsTotal Assets are the sum of Non-current Assets and Current Assets. Non-current Assets = Fixed Assets + Non-current Investments = 1, 60, 000 + 1, 00, 000 = Rs. 2, 60, 000 Current Assets = Total Assets - Non-current Assets = 3, 00, 000 - 2, 60, 000 = Rs. 40, 000 Step 2: Calculate Current LiabilitiesTotal Equity & Liabilities equals Total Assets (Rs. 3,00,000). Total Equity & Liabilities = Shareholders’ Fund + Non-current Liabilities + Current Liabilities 3, 00, 000 = 2, 00, 000 + 80, 000 + Current Liabilities Current Liabilities = 3, 00, 000 - 2, 80, 000 = Rs. 20, 000 Step 3: Calculate Current Ratio Current Ratio = \frac{40 , 000}{20 , 000} = \frac{2}{1} = 2 : 1

Try it yourself before checking the explanation above.

Consider the following financial metrics of a firm:Total Assets = Rs. 3, 00, 000 Non-current Liabilities = Rs. 80, 000 Shareholders' Fund = Rs. 2, 00, 000 Fixed Assets = Rs. 1, 60, 000 Non-current Investments = Rs. 1, 00, 000 The Current Ratio of the firm is:

2 : 1

1 : 1

1 : 2

3 : 2

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