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What is the Meaning of Current ratio?

Answers were Sorted based on User's Feedback



What is the Meaning of Current ratio?..

Answer / ravi

curent ratio is the ratio which explains the relation ship
between current assets &current liabilities the ideal ratio
for current ratio is 2:1 for every 1 rs of liability there
must be 2 rs of asset the formulae for this is
current ratio= current assets/current liabilities
current asets = stock, debtors, cash in hand, cash at bank
current liabilities = creditors, b.p

Is This Answer Correct ?    24 Yes 0 No

What is the Meaning of Current ratio?..

Answer / aritra

Current Asset/ Current Liabilities

Is This Answer Correct ?    8 Yes 0 No

What is the Meaning of Current ratio?..

Answer / ragu

to meet the shorterm obligations

Is This Answer Correct ?    4 Yes 1 No

What is the Meaning of Current ratio?..

Answer / rajeev shivale

Current ratio=current assets /current liabilities

The ideal current ratio is 2:1,it means that if tomorrow
the assets are reduced to half of there value, still it
will be able to full fill the liabilities.
It cannot be followed blindly because the company having
ideal current ratio may not be doing well, they may have
the slow moving debtors,obsolete goods thus threating the
short term solvency.

Is This Answer Correct ?    1 Yes 0 No

What is the Meaning of Current ratio?..

Answer / paramkusamkrishnakanth

current assets/current liabilities=2/1.

Is This Answer Correct ?    0 Yes 0 No

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