Question

Calculate 'Liquid Ratio' from the following information:

Current Liabilities Rs. 50,000, Current Assets Rs. 80,000, Stock Rs.25,000, Prepaid Expenses Rs.5,000

विकल्प

• 1 : 1

• 2 : 1

• 3 : 1

• 2 : 3

Answer 1

1 : 1

Explanation:

Liquid Assets = Current Assets - Closing Stock - Prepaid Expenses

= Rs. 80,000 - Rs. 25,000 - Rs. 5,000

= Rs. 50,000

Liquidity Ratio = Liquid Assets : Current Liabilities

= Rs. 50,000 : Rs. 50,000

= 1 : 1