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  3. 12th Class
  4. Accountancy
  5. Accounting Ratios

12th Class Accountancy Accounting Ratios Question Bank MCQs - Accounting Ratios

  • question_answer
       If inventory is Rs. 1,00,000, current assets Rs. 8,00,000 and current liabilities Rs. 4,00,000, then what will be the liquid ratio?

    A) 1.75 : 1             

    B) 2 : 1

    C) 2 : 3                  

    D) 3 : 1

    Correct Answer: A

    Solution :

    [a] 1.75 : 1
    Hint: Liquid Ratio = \[\frac{Current Asset-Inventory}{~~ Current Liabilities}\]
                                = \[\frac{8,00,000-1,00,000}{~~ 4,00,000}\]=1.75:1


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