what is current ratio formula

Answers were Sorted based on User's Feedback



what is current ratio formula..

Answer / suresh

current ratio= current assets / current liabilities

Is This Answer Correct ?    32 Yes 1 No

what is current ratio formula..

Answer / sridhar.g

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES.

Is This Answer Correct ?    18 Yes 2 No

what is current ratio formula..

Answer / sanmilan

The answer is same as above i.e.
Current Ratio = Current Assets/Current Liabilities
The higher the current ratio, the more capable the company
is of paying its obligations.The desirable ration is '1'.
A lower ratio shows poor Financial Condition of the
Organization and needs attention to probe into the causes
and remedial actions. It also indicates that additional
Financing would be needed to run the Organization.
More attention to be given on the 'Receivables' as well as
Dead Investments, Bad Investments as well as Credit Policies.

Is This Answer Correct ?    13 Yes 0 No

what is current ratio formula..

Answer / pradeep

the formula of current ratio in acconting is = current
assets/current liabilities

current assetes = cash in hend , current debtors, stock etc.

current liabilities = creditors , short term loan , all
short terms payable etc.

Is This Answer Correct ?    4 Yes 0 No

what is current ratio formula..

Answer / jyothi.p

Current Ratio= Current Assets/Current Liabilities

Where Current Assets= cash in hand, cash at bank,
debitors,bills receivable, work in progress,closing stock,
shortterm investments, prepaid expenses etc.

Where Current liabilities= trade creditors,Bills
payable,bank overdraft,income tax payable,outstanding
expenses,shortterm advances etc.

A ratio equals or near to 2:1 is satisfactory

High current ratio indicates the firm is liquid and has an
ability to pay its current obligations in time
Low current ratio represents that the firms
liquidity/working capital position is not good & company
may face problems in payment of current liabilities.

Is This Answer Correct ?    3 Yes 0 No

what is current ratio formula..

Answer / ravindra

current ratio explains the relatin ship between current
assets and current liabilities

current assets - cash,stock,debtors,bills receivable e.t.c
current liabilities - sundry creditors, bills payable

current ratio= current assets / current liabilities

the ideal ratio for this is 2:1 this indicates for every 2
rs of asset there must be 1 rupee of liability

Is This Answer Correct ?    2 Yes 0 No

what is current ratio formula..

Answer / shankar

current Asset/current liabilities

Is This Answer Correct ?    1 Yes 0 No

what is current ratio formula..

Answer / mahi peddi

current assets/current liabilities
the ideal ratio must be 2:1

Is This Answer Correct ?    0 Yes 0 No

what is current ratio formula..

Answer / nisha sagore

current ratio = current assesta - current liabilities

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Accounting General Interview Questions

i want to know about VAT & CST (inculding its Form No.)

5 Answers   Sumeet,


What is the due date of Filing PF return? Is it being filed half yearly or annually?

1 Answers   Honda,


What are source documents in accounting?

0 Answers  


Tell me why some asset accounts have a credit balance?

0 Answers  


what is assest and liability? give examples

2 Answers  






Plant and machinery destroyed for 50000

0 Answers  


Entry for revenue item will be Expenses A/C Dr to Cash. But in the Profit and Loss account we will see the expenses with a pre fix of To Expenses Why?

0 Answers  


What is difference between accounts and finance?

11 Answers   Genpact,


If a company Purchased Cotton Waste.. it comes under which expense/ how to treat in account

3 Answers  


what is the value period of cheque?

12 Answers  


What is a ledger? What do you mean by ledger posting?

0 Answers  


the following information wads extracted ffrom the book of a business man :debtors as on 31/12/1987 $25000 bad debts during 1987 $1000.provision for doubtful debts is to be maintained at 5%. a provision for discount is also at 2%. you are required to calculate the amount set aside in respect of provision for doubtful debts and provision for discounts on debtors respectively

1 Answers  


Categories