Current Assets Rs4 00 000 Current Liabilities Rs2 00 000 and Inventory is Rs50 000 Liquid Ratio will...........

General Accounting Principles Ratio analysis

Current Assets Rs4,00,000; Current Liabilities Rs2,00,000 and Inventory is Rs50,000. Liquid Ratio will be :

2:1

2.25 : 1

4:7

1.75 : 1

Current Assets Rs4,00,000; Inventory is Rs50,000

Current Liabilities Rs2,00,000

liquid assts= Rs4,00,000-Rs50,000=Rs.3,50,000

liquid ratio= liquid assets/current liabilities

Rs.3,50,000/Rs2,00,000

=1.75:1

By: Abhipedia

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