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Categories >> Accounting >> Accounting AllOther


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 Accounting General interview questions  Accounting General Interview Questions (2782)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4351)
Why 2:1 is considered as ideal current ratio?
 Question Submitted By :: Ankit Goenka
I also faced this Question!!     Rank Answer Posted By  
  Re: Why 2:1 is considered as ideal current ratio?
# 1
2:1 is current assets/current liabilities ratio of ideal
Is This Answer Correct ?    14 Yes 2 No
Shailendra Srivastava
  Re: Why 2:1 is considered as ideal current ratio?
# 2
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 4 No
  Re: Why 2:1 is considered as ideal current ratio?
# 3
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
Is This Answer Correct ?    14 Yes 1 No
Prasanth P

Other Accounting AllOther Interview Questions
  Question Asked @ Answers
HOW TO CALCULATE NAV? If investment Rs 70000 ( unit 1689.197), dividend recd.Rs.10135.18   4
EXPAND_________VT   1
EXPAND_______________URPF   2
What is insurance? GMC 1
Expand---------RTPS   1
What is meant by Intangible Assets?   5
Expand ________GST   4
what is deferred revenue expenditure   3
Principles of accounting with atleast one example for each. Franklin-Templeton 3
Where is we show Discount Received in which head?   4
Why we have to present first and second draft(Bill of Exchange) for bank negotiation.Why cant we present only One draft?   1
what is contract note?   1
For more Accounting AllOther Interview Questions Click Here 

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