Question

Fixed asset help to find out current ratio. True or False?​

Answer 1

No current asset is helps

Answer 2

Fixed asset help to find out current ratio is false.

Explanation:

As we know that

The current ratio shows a relationship between the current assets and the current liabilities.

In mathematically,

Current ratio = Total Current assets ÷ total current liabilities

This ratio measures the liquidity of the company.

While the fixed asset is the long term asset whose life is more than one year. It includes plant, machinery, furniture & fixtures, land & building, etc

Learn more

What is current ratio​

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Find out current asset if current labilites is 80000 and current ratio is 2:1

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