current ratio? asked on 30/7/09
Answers were Sorted based on User's Feedback
Answer / pranjal
Current ratio means this ratio measures the solvency of the
company in the short term.
Current Asset,loans & Advances
______________________________________
Current liabilities & provision
A high current ratio may be due to the piling up of
inventory,ineffciency of collection of debtors,high
balances in cash and bank a/c without proper investment
etc.
| Is This Answer Correct ? | 28 Yes | 0 No |
Answer / sheela chandra
Current Ratio is used to assess the short term financial
position of an enterprise.
| Is This Answer Correct ? | 13 Yes | 2 No |
Answer / hari enaganti.
current ratio=current assets/current liabilities
*current assets can include only marketable securities.
*creditors for capital WIP is to be excluded from current
liabilities.
| Is This Answer Correct ? | 12 Yes | 1 No |
Answer / durga naidu
Current ratio means this ratio measures the solvency of the
company in the short term.
Current Asset,loans & Advances
______________________________________
Current liabilities & provision
A high current ratio may be due to the piling up of
inventory,ineffciency of collection of debtors,high
balances in cash and bank a/c without proper investment
etc.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / saranya.r.v.n.a
current ratio = Current assets /Current Liabilities
Where
Current aSSETS =CASH+BANK+MARKETABLESECURITIE
S +RECEIVABLES+PREPAID EXPENSES
CURRENT LIABILITIES= PAYABLES+OUTSTANDING EXPENSES+
S SHORT TERM BORROWINGS
IDEL CURRENT RATIO=2:1
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / b.raju
current ratio shows the relation ship between current
assets and current liabilities.we can calculate current
ratio from under formula.
Current Ratio=current assets/current liabilities
The standard raio is 2:1
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / rakeshyadav
it measuresshorterm debt paying ability
formula:curent asset/current laiabilities
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / prabhudas
current ratio=current assets/current liabilities
*current assets can include only marketable securities.
*creditors for capital WIP is to be excluded from current
liabilities.
| Is This Answer Correct ? | 0 Yes | 0 No |
what is the difference between direct income and indirect income. pleases explain with example.
18 Answers Deepak Enterprises, HJ, Power Packaging,
A company produces and sells 12500 units of Commodity X at Rs 50 each. The variable cost of the production is 20 % of selling price. Fixed cost being Rs 100000 per annum. Calculate the PV ratio and BEP if. The selling price is reduced by 5 %. Fixed cost is increased by 2 lacs
company accounts & final accounts?
service tax form no ? What is CC Limit ? What is branch accounts?
what are the different types of invoices?
scooter fuel is under conveyance and car fuel is under car running & maintenance exp.. Is that right
What are the steps involved in converting the trail balance of a foreign branch? Explain the steps involved in incorporating the foreign branch trail balance in HO books
Choose the right answer when a customer directly deposits in our Bank towards his dealership deposit we have to debit 1.Customer 2.dealershiip deposit 3.Bank
how to see the resluts of the bank clerical exams? can someone help me on tis.. i've written oriental bank of commerce but not able to know my resluts...
0 Answers Oriental Bank Of Commerce,
recently release the 6.0 version not succede in the market why?
what are the golden rule of accounting.
18. If the real gross domestic product of US has increased, but the production of goods remained the same, then the production of services has; a) Increases b) Decreases c) Remained same d) Would vary