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Why 2:1 is considered as ideal current ratio?
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Answer Posted / bhuvananatesh
2:1 is the ideal current ratio ,forget the golden
rule,there is no ideal ratio like that, it depends upon the
composition of current assets,if the firm conatains obsolte
stock or aged debtors in their current asses,2:1 is not the
ideal current ratio.
| Is This Answer Correct ? | 21 Yes | 12 No |
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