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why current ratio is 2:1.why it is not 100:1,10:1,20:1 in
current ratio. please tell me....
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Answer Posted / chittibabu
if the current ratio is 2:1, company position is good. it
says that company consist of 2 assets for each liability to
clear its debts. if current ration is like 100:1,10:1,20:1
tells that over assets hold by the company. its not good at
all. then company has to face the problems.
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