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Categories  >>  Accounting  >>  Accounting AllOther
 
 


 

 
 Audit interview questions  Audit Interview Questions
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 Accounting General interview questions  Accounting General Interview Questions
 Accounting AllOther interview questions  Accounting AllOther Interview Questions
Question 
current ratio?  asked on 30/7/09
 Question Submitted By :: Rajasri.muddu
I also faced this Question!!     Rank Answer Posted By  
 
  Re: current ratio? asked on 30/7/09
Answer
# 1		 
This ratio is used to assess the firm's ability to meet its
current liabilities. The relationship of current assets to
current liabilities is known as current ratio.

current Ratio= current assets / current liabilities
 
Is This Answer Correct ?    2 Yes 0 No
K.abinaya
 
  Re: current ratio? asked on 30/7/09
Answer
# 2		 
This ratio explains the relation ship between current 
assets & current liabilities wher as current assets =cash, 
debtors , bills receivable, where as current liabilities=
creditors,  bills payable, the formulaae for caluculating
current ratio  = current assets/ current liabilities
the ideal of current ratio is 2:1 this indicate for every 2 
rs of asset there must be 1 rupee of liability
 
Is This Answer Correct ?    1 Yes 0 No
Ravindra
 
 
 

 
 
 
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