why current ratio is 2:1.why it is not 100:1,10:1,20:1 in
current ratio. please tell me....

Answer Posted / guest

current ratio is 2;1, An indication of a company's ability to
meet short-term debt obligations; the higher the ratio, the
more liquid the company is. Current ratio is equal to current
assets divided by current liabilities. If the current assets
of a company are more than twice the current liabilities, then
that company is generally considered to have good short-term
financial strength. If current liablities exceed current
assets, then the company may have problems meeting its short-
term obligations

Is This Answer Correct ?    4 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Tell me did you use accounting applications at your previous companies or prefer working manually?

646


1. how to pass TDS entry in tally 2. how to pass service tax entry in tally 3. how to pass depreciation entry in tally 4. what is percentage in TDS and service tax

1733


India me ,suppose that hmare pass 190000 Rs hai,to kitna tax lgega,or kis heshab se lgega,

1683


Explain what is the disadvantage of double entry system?

606


Tell me do you have any professional experience of this field?

651






What is full rate on plywood box in haryana sale tax:

1448


how will you adjust voluntary seperation payment in cash flow statement

1621


If closing stock is given in adjustments, how we show in tally 9.0 ?

1599


pls. tell me with detail (what is the rate of service tax and w.c.t. for a contractor who do civil work -make building and repairing. what is the format of generate a bill for (with material and labour both ) what entry should i pass in my accounts bokks. general and sales entry.

1670


HOW TO FILL PURCHASE RETURNS IN VAT 200,IF NOT PURCHASES THE PERIOD?

1543


What is the importance of accounting standards?

681


how to calculate the per unit cost of production

1235


whats difference between manufacturing account & cost account

1660


When we paid TDS on commission how will journal entry come

887


What is the abbreviation for the accounting terms debit and credit?

552