Question

(Current Ratio & Acid Test Ratio given) Given
Current ratio 2:1
Acid Test ratio = 0.5 : 1
Current Liabilities 2,00,000
Find out
(a) Current assets
(b) Quick assets
(c) Inventory
[Ans. (a) 4,00,000, (b) 1,00,000, (c) 3,00,000)
on​

Answer 1

Answer:

What does a current ratio of 0.8 mean?

Lenders start to get heartburn if their customer's company balance sheet shows a calculated current ratio of, say, 0.9 or 0.8 times. This means there are not enough current assets to cover the payments that are due on the company's current liabilities. ... This ratio is also known as the “acid test” ratio

Answer 2

Answer:

yes upper answer is right