Question

what state has satisfactorily ratio? what may be reason behind it.​

Answer 1

Answer:

2:1

Explanation:

The rule of thumb for a satisfactory current ratio is 2:1. Let Current assets be Rs.100000 and the Current liabilities be Rs.40000

Now, Current ratio = Current assets/ Current liabilities

= 100000/40000

= 2.5:1 .

This current ratio is satisfactory as it shows that the current assets available are 2.5 times the amount of current liabilities.