When the current ratio is 4:1 and the amount of current liabilities is rs. 12,000 , what is the amount of current assets? rs. 12,000 rs. 4,000 rs. 48,000 rs. 60,000?
Answers
Answer:
The correct answer is Current Ratio = 25,000 ÷ 10,000 = 2.5.
Explanation:
Current Ratio = Current Assets / Current Liabilities
This includes accounts payable, payroll, credit cards, and sales tax payable, among other items. In dividing total current assets by total current liabilities, you'll find out how much of your current liabilities can be covered by current assets.
the Current Liabilities Formula is represented as, Current Liabilities formula = Notes payable + Accounts payable + Accrued expenses + Unearned revenue + Current portion of long term debt + other short term debt. The liabilities to assets ratio can be found by adding up the short term and long term liabilities, dividing them by the total assets.
Current Ratio = 25,000 ÷ 10,000 = 2.5. The current ratio for Company ABC is 2.5, which means that it has 2.5 times its liabilities in assets and can currently meet its financial obligations Any current ratio over 2 is considered 'good' by most accounts.
When the current ratio is 4:1 and the amount of current liabilities is rs. 12,000 , what is the amount of current assets?
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