Current ratio indicates the solvency position of the business.

Related MCQs

• Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.
• The ratio which shows the proportion of profits retained in the business out of the current year’s profits is
• ……………… ratio indicates the relationship of gross profit to net sales in terms of percentage.
• The ratio which indicates earnings per share reflected by the market price is .
• An ideal current ratio is considered as 1:2
• Current ratio is a
• Liquid Ratio is also known as 2:1 ratio.
• As per AS 15 accumulated compensated absences can be carried forward if the current period entitlement is not used in full.
• If Sales of last year is Rs. 600000 and sales of corresponding current year is Rs.200000 then Short sales will be ……………
• If Sales of last year is Rs. 450000 and sales of corresponding current year is Rs.200000 then Short sales will be ……………