What is current ratio?

Answers were Sorted based on User's Feedback



What is current ratio?..

Answer / nikhilesh yadav

current ratio=current assets/current liabilities

Is This Answer Correct ?    18 Yes 1 No

What is current ratio?..

Answer / srinivas sudagoni

Current Ratio is also called as Working capital ratio. It the mathematical relationship between current assets and Current liabilities. The formula can be written as

Current ratio= Current Assets/Current liabilities

the ideal ratio is 2:1.

Is This Answer Correct ?    8 Yes 0 No

What is current ratio?..

Answer / vivek mohan nair

yes the above formaula for current ratio is correct. But
the question is what is current ratio?

ans:A liquidity ratio that measures a company's ability to
pay short-term obligations.

The Current Ratio formula is:Current assets/ current
liablities

Also known as "liquidity ratio", "cash asset ratio"
and "cash ratio".

Is This Answer Correct ?    5 Yes 0 No

Post New Answer

More Accounting General Interview Questions

how to account salary advanced from petty cash

1 Answers  


Contra asset accounts have credit balance and are an offset to a related asset account ? true or false .

3 Answers  


I need to know when you buy a asset on credit and your monthly instalment is $10000 in the books where and how do you record the outstanding liability the interest and the capital instalments.Secondly the deposit that you receive which you should still send back to the tenat where in the books do you record for entry and the contra entry.

1 Answers  


As per accounting standards, what is the meaning of "Short Term Liabilities and Long Term Liabilities:? As the Company can change the classification based on their business? Or these meanings are fixed?

4 Answers  


wht is different between defered tax liablities and defered tax assets??????

0 Answers  






How to set/ determine credit limit for customers ?

2 Answers   Infosys,


Who is considered the father of accounting?

0 Answers  


what is the difference between an invoice and bill?

2 Answers  


Sir, Please tell me what diesel is direct/indirect exp.

4 Answers  


what is balance sheet?

3 Answers  


When tds is deducted from the payments to suppliers, how the Entry will appear in books of accounts in tally.

3 Answers  


Compare financial accounting and cost accounting.

0 Answers  


Categories