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Answer Posted / ravi
curent ratio is the ratio which explains the relation ship
between current assets ¤t 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
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