current ratio? asked on 30/7/09
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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 |
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