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current ratio? asked on 30/7/09

Answers were Sorted based on User's Feedback



current ratio? asked on 30/7/09..

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

current ratio? asked on 30/7/09..

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

current ratio? asked on 30/7/09..

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

current ratio? asked on 30/7/09..

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

current ratio? asked on 30/7/09..

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

current ratio? asked on 30/7/09..

Answer / ranjithachowdari

currentassets\currentliabilities

Is This Answer Correct ?    1 Yes 0 No

current ratio? asked on 30/7/09..

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

current ratio? asked on 30/7/09..

Answer / rakeshyadav

it measuresshorterm debt paying ability
formula:curent asset/current laiabilities

Is This Answer Correct ?    0 Yes 0 No

current ratio? asked on 30/7/09..

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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