Interested to Buy Any Domain ? << Click Here >> for more details...
if the current ratio is 0.5 what is the impact of working
capital
- 4 Answers
- 13174 Views
- Capital IQ, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / manoj s
RULE OF THUMB FOR THE CURRENT RATION IS 2:1.. but in this
cases it is 0.5.. hence their current assets are not
enough to meet the current year obligation..Hence, there
is Negative workin capital...
| Is This Answer Correct ? | 76 Yes | 1 No |
Answer / tanmaya.10@rediffmail.com
if the current ratio is 0.5 then there not sufficient gross working capital(current assets)to meet the current liabilities.There will be a negative working capital.
| Is This Answer Correct ? | 9 Yes | 1 No |
Answer / rashmiranjan rout
Negative of the working capital because according to the rule of thumb current ratio is 2:1 but here current ratio is 0.5 than current liabilities is more than current asset . For this reason the company is unable to meet their short term obligations.A company required (short term fund) working capital to carry out its day to day operations, purchase of raw materials, payment of wages etc.
| Is This Answer Correct ? | 3 Yes | 0 No |
WHAT ARE THE DIFFICULT ELEMENT OFF JOB
Pls. tell me any body , in my company we are paying emi for systems how the value take for computers & how to book a j.v for above transactions
A business sold goods valued at R1000 excluding vat on credit to a customer. What would be the debit to the customers account if vat is 14% ?
WHAT ARE THE LIMITATIONS FACING ACCOUNT CONCEPTS AND CONVENTIONS?
what is the manual procedure for accounting
Please help me in this entries Pass accounting entries for the following transaction in the books of XYZ company. A rendered professional service to company XYZ and sent an invoice dated 01/01/2016 for Rs 1,00,000/- + service tax Q1. Pass journal entry for the invoice received considering the service tax and TDS. Q2. Payment was made on 01/02/2016 by cheque. Pass payment entry.
instead of clicking backup,i selected restore in tally7.2 and all my data is lost and i also forgot the comapny name,which i wanted to restore?how to recover my data?
Difference between reserves for bad debts & provision for bad debts.
6 Answers HSBC, NRN Business solution, Siemens,
What is mean by working capital?
what is the meaning of deferred revenue ? give me some examples
Do you think there is any difference between inactive and dormant accounts?
What is fitting and fixtures?
Audit 
