Home
Class 12
ACCOUNTS
A Company's Current Ratio is 2.8:1, Curr...

A Company's Current Ratio is `2.8:1`, Current Liabilities are Rs. 2,00,000, Inventory is Rs. 1,50,000 and Prepaid Expenses are Rs. 10,000. Its Liquid Ratio will be:

A

`3.6:1`

B

`2.1:1`

C

`2:1`

D

`2.05:1`

Text Solution

Verified by Experts

The correct Answer is:
C
Promotional Banner

Topper's Solved these Questions

  • ACCOUNTING RATIOS

    DK GOEL|Exercise Multiple Choice Questions (Solvency Ratios)|19 Videos

  • ACCOUNTING RATIOS

    DK GOEL|Exercise Multiple Choice Questions (Activity Ratios)|31 Videos

  • ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS

    DK GOEL|Exercise Multiple Choice Questions (viii) Guarantee of Profit to a Partner (HOTS)|13 Videos

  • ACCOUNTING TREATMENT OF GOODWILL

    DK GOEL|Exercise ILLUSTRATION 6.|1 Videos