current ratio? asked on 30/7/09

Answer Posted / 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



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

while doing work in dolphin software when credit note is given by supplier to purchaser then purchaser is debited supplier account so on credit side which account is coming which account should be credited

1629


How & When We Calculate Deffered Tax... Please Give me Some Example.?

1618


What do you know about hyd? Tell something about hyd?

1841


Hi, I am preparing for Junior Accounts Officers test- APTRANSCO. Can any one suggest the model paper / Books available? john kadapa

1603


how to check which item is sold by the sundry debtors in tally?

1640






Who is the maker of the promissory note

1521


Why are there 30 blue-chip companies only considered in bombay stock exchange.And why those thirty only effect the sensex

1716


what is the main link between the income statement and the balance sheet?

1631


What are the duties of sales tax department? Explain it

1764


If in a PO, the freight condition is mentioned as Air freight and the material is actually received by Road, how does the system check before making the necessary accounting entries?

1597


Hi, I am doing Data Entry jobs in Accounts. please let me know "How to maintain Medical stores accounts"?

1738


Transfer nett profit of Rs 325000/- to Reserves and Surplus

1952


define fixed assets

1439


is advance against FD or RD is treated as NPA .if EMI is not in scheduled . or classification of npa as per day is is made from sanction date or last payment date of repayment . please suggest me

1737


hii,i was appeared in recruitment process of Catholic Syrian Bank.Interview question were general banking related... as what is crr,calling rate, current inflationrate etc

1593