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current ratio? asked on 30/7/09
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Answer / k.abinaya
This ratio is used to assess the firm's ability to meet its
current liabilities. The relationship of current assets to
current liabilities is known as current ratio.
current Ratio= current assets / current liabilities
| Is This Answer Correct ? | 6 Yes | 1 No |
This ratio explains the relation ship between current
assets & current liabilities wher as current assets =cash,
debtors , bills receivable, where as current liabilities=
creditors, bills payable, the formulaae for caluculating
current ratio = current assets/ current liabilities
the ideal of current ratio is 2:1 this indicate for every 2
rs of asset there must be 1 rupee of liability
| Is This Answer Correct ? | 3 Yes | 0 No |
This ratio is used to assess the firm's ability to meet its
current liabilities. The relationship of current assets to
current liabilities is known as current ratio.
current Ratio= current assets / current liabilities
| Is This Answer Correct ? | 0 Yes | 0 No |
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