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Categories >> Accounting >> Accounting AllOther
 
 


 

 
 Audit interview questions  Audit Interview Questions (428)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (158)
 Taxation interview questions  Taxation Interview Questions (1904)
 Accounting General interview questions  Accounting General Interview Questions (2830)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4369)
Question
Why 2:1 is considered as ideal current ratio?
 Question Submitted By :: Accounting-AllOther
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
If a company's current ratio is in the range 2:1, then it
is generally considered to have good short-term financial
strength. If current liabilities exceed current assets (the
current ratio is below 1), then the company may have
problems meeting its short-term obligations. If the current
ratio is too high, then the company may not be efficiently
using its current assets or its short-term financing
facilities.
 
Is This Answer Correct ?    14 Yes 1 No
Prasanth P
 
Answer
# 2
2:1 is current assets/current liabilities ratio of ideal
concern.
 
Is This Answer Correct ?    14 Yes 2 No
Shailendra Srivastava
 
 
 
Answer
# 3
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 ?    8 Yes 5 No
Bhuvananatesh
 

 
 
 
Other Accounting AllOther Interview Questions
 
  Question Asked @ Answers
 
Expand A V   3
New emlpoyee was joined on 15th Jan and salary paid on 28th Feb amt of Rs.20000/- and asked to give the Journal entry for the Month of Jan, Fed and March (His Monthly Salary is Rs.8000/-) Genpact 22
What is accrual? Give example for the same? Infosys 4
What are all the items come under P&L and Balance sheet? Wipro 14
Expand---------STRP   2
how to prepare Profit and los accounts ? Study-Overseas 8
Financial Management vs Management accounting?   1
expand N H A I   2
Answered but misspelled pl correct SPENT BUT NOT INCURRED(ANS.DIAPERP PXE)   2
When did the accounting requirements of the revised SORP & Regulations come into force?   1
what is subsidiary book? ICICI 22
what is a difference b/w provision and reserve OPI-Global 3
 
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