Question

Generally Current ratio should be ________. (Fill in the blank by choosing correct option)
1) 2:1
2) 1:1
3) 3:1
4) 1:2

Answer 1

heya !

Question -

Generally Current ratio should be ________. (Fill in the blank by choosing correct option)
1) 2:1
2) 1:1
3) 3:1
4) 1:2

Answer -

option A " 2:1"

Generally Current ratio should be 2:1.

hope this helps you

Answer 2

Generally Current ratio should be ________. (Fill in the blank by choosing correct option)

1) 2:1

2) 1:1

3) 3:1

4) 1:2

The correct answer is :

1) 2:1

Explanation :

• Generally Current ratio should be __2:1__.
• The current ratio refers to the popular metric that is used across the industry to assess a company's short-term liquidity in relation to available assets and pending liabilities.
• Simply, the current ratio is a method of showing the ability of a company to generate enough cash to pay off all its debts once they become due.
• The current ratio is also used as a measure of the overall financial health of a company.
• If the ratio is between 1:5 to 3, then this ratio is considered a healthy ratio. A ratio less than one indicates a problem with the company's liquidity.
• A ratio of more than 3 indicates that the company is not using its current assets efficiently or managing its working capital properly.

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