If the work certified of a contract is Rs.
2,00,000 and retention money is Rs. 30,000,
compute the cash ratio.
Options
O 85 Percentage
O 15 Percentage
O 87 Percentage
O 13 Percentage
Clear Response
Answers
Answer:
Cash Ratio will be 15 percentage If the work certified of a contract is Rs.
2,00,000 and retention money is Rs. 30,000.
Explanation:
- Cash Ratio will be calculated - Dividing Retention divide by Contract amount.
Cash Ratio =
⇒ Cash Ratio = 30000 × 100 ÷ 200000
⇒ 15%
Therefore, Cash Ratio will be 15 percentage for the company.
#SPJ2
Answer:
Cash Ratio will be 15 percentage If the work certified of a contract is Rs.
2,00,000 and retention money is Rs. 30,000.
The cash ratio-
The cash ratio is a measurement of a company's liquidity. It specifically calculates the ratio of a company's total cash and cash equivalents to its current liabilities.
Cash ratio = (Cash + Marketable Securities) / Current Liabilities.
Retention money -
Retention money is an amount held back from a payment made under a construction contract. It is usually a percentage of the amount payable of each instalment.
Explanation:
Cash Ratio will be calculated - Dividing Retention divide by Contract amount.
Cash Ratio =
⇒ Cash Ratio = 30000 × 100 ÷ 200000
⇒ 15%
Therefore, Cash Ratio will be 15 percentage for the company.
#SPJ2