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Identify the item that is not taken into account in computing the current ratio.
Bank Loan
Bank
Stock
Cash
Current ratio includes current asset over current liabilities. Current liabilities includes all those liabilities that materialize within one accounting cycle or 12 months
By: honey kaundal ProfileResourcesReport error
Abhishek Raj
Second option is not clear
Rinki Goswami
how come bank is included in current ratio , poorly framed question
It means bank balance included in cash & cash equivalents which is also a liquid asset.
Runal Naik
How can bank be the answer
Bank is not the answer, bank balance is the amount we have in our bank account, while bank loan is normally a term loan taken for more than 12 month hence not a current asset
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