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Current ratio questions and answers

WebThe current ratio of CD Limited on 30 April 2024 was 1.55 : 1. The company is anxious to increase this ratio and several proposals are being considered. REQUIRED (a) State the formula for the calculation of the current ratio. ..... Answer: Current assets : current liabilities (b) current ratio of each proposal. The first one has been completed ... WebSep 29, 2024 · (f) One ratios reflect both quantitative and qualitative aspects. Answer False DO IT YOURSELF I Question 1. Current ratio =4.5:1,quick ratio =3:1, Inventory is Rs.36,000. Calculate the current assets and current liabilities. Question 2. Current liabilities of a company are ? 5,60,000 current ratio is 5 : 2 and quick ratio is 2 : 1.

Current Ratio Formula + Calculator - Wall Street Prep

WebThe company's current ratio is 1.0 : 1 2.0 : 1 2.1 : 1 7. The company's quick ratio is 0.7 : 1 1.0 : 1 2.0 : 1 Use the following information to answer items 8 - 11: For its most recent year a company had Sales (all on credit) of … Webratios and comment: (a) Current ratio, (b) Acid Test Ratio, (c) Stock‐Turnover Ratio, (d) Debtors Turnover Ratio, (e) Creditors' Turnover Ratio, and Average Debt Collection period. ... that need to prepare Trading Account to identify values which are … science of healing https://quinessa.com

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WebBrief Exercise Ratio Analysis Trevor Corporation had $2,900,000 in total liabilities and $4,300,000 in total assets as of December 31, 2024. Trevor calculates that 40% of assets arc designated as current, while $500,000 of Trevors total liabilities are long-term. Required: Calculate Trevors debt to assets ratio and its long-term debt to equity ... WebAccounting questions and answers. Suppose 3M Company reported the following financial data for 2025 and 2024 (in millions). (a) Calculate the current ratio for \ ( 3 \mathrm {M} … WebAug 10, 2024 · Current Ratio = = = 2 : 1 Question 6. From the following information calculate interest coverage ratio. Net profit after interest and tax ₹ 1,20,000; Rate of income tax 40% ; 15% debentures ₹ 1,00,000; 12% mortgage loan ₹ 10,000. (All India2024) Answer: Rate of tax 40% science of him

Liquidity Ratio Accounting – Formulas, Examples, …

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Current ratio questions and answers

Current Ratio - Meaning, Interpretation, Formula, Calculate

WebThe quiz questions will test you on various types of ratios relevant to a company's ability to pay its debts. Quiz & Worksheet Goals In these assessments, you'll be tested on the … Web27 minutes ago · Thanks for contributing an answer to Stack Overflow! Please be sure to answer the question. Provide details and share your research! But avoid … Asking for …

Current ratio questions and answers

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WebJan 15, 2024 · The value of the current ratio is calculated by dividing current assets by current liabilities. More precisely, the general formula for the current ratio is: current_ratio = current assets / current_liabilities. … WebBusiness Accounting Exercise 5-14 Computing and analyzing acid-test and current ratios LO A1 Case X Case Y %24 Case z $1,300 700 Cash Short-term investments Current receivables Inventory Prepaid expenses $ 2,550 260 290 540 650 2,250 400 2,080 3,200 900 700 Total current assets $ 5,490 $ 3,580 $ 6,750 Current liabilities $ 2,280 $ 1,350 …

http://www.iimchyderabad.com/econtent/RATIO%20ANALYSIS%20SOLVED%20PROBLEMS.pdf WebBegin by selecting the formula to compute the current ratio. Current ratio = Total current assets ÷ Total current liabilities Part 2 Now, compute the current Question content area bottom Part 1 Requirement 1a. Compute the current ratios for 2024 and 2024.

WebThe formula for calculating the current ratio is as follows. Current Ratio = Current Assets ÷ Current Liabilities. As a quick example calculation, suppose a company has the … WebFinance questions and answers; 1. Calculate Ramakrishnan, Inc.’s current ratio for 2024 and 2024. (Round your answers to 2 decimal places.) 2. Calculate Ramakrishnan, Inc.’s quick ratio for 2024 and 2024. (Round your answers to 2 decimal; Question: 1. Calculate Ramakrishnan, Inc.’s current ratio for 2024 and 2024.

WebA: Solution:- Computation of ratios as follows under:- 1)Current ratio =Current assets / Current… Q: Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts… A: Ratios are very helpful in taking Decision of investment of any company and also it provides the… science of hobbiesWebCurrent Ratio = Current Assets Current liabilities Before payment = Cash Creditors Rs 15,000 Rs 7,500 = = 2 : 1 After payment = Rs1000 to creditors Current Ratio = Cash Creditors Rs 15,000– Rs 1000 Rs 7,500 – Rs 1000 = = Rs 14,000 Rs 6,500 = 2.15 : 1 Hence, it increases the current ratio from 2 : 1 to 2.15 : 1 INTEXT QUESTIONS 28.1 science of harry potterWebDec 17, 2024 · Based on the figures called out above, Walmart's current ratios and quick ratios for 2024 and 2024 (for the reporting period as of the balance sheet above) were: … science of healthy eatingWebMar 22, 2024 · What is the current ratio? The current ratio is one of two main liquidity ratios which are used to help assess whether a business has sufficient cash or … science of hittingThe current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assetson its balance sheet to satisfy its current debt and other payables. A current ratio that … See more To calculate the ratio, analysts compare a company’s current assets to its current liabilities.1 Current assets listed on a company’s balance sheet include cash, accounts receivable, inventory, and other current assets (OCA) … See more The current ratio measures a company’s ability to pay current, or short-term, liabilities (debts and payables) with its current, or short-term, assets, such as cash, inventory, and receivables.1 In many cases, a company … See more What makes the current ratio good or bad often depends on how it is changing. A company that seems to have an acceptable current … See more A ratio under 1.00 indicates that the company’s debts due in a year or less are greater than its assets—cash or other short-term assets expected to be converted to cash within a year or less. A current ratio of less … See more pratt read screwdriver setWebNumerical Questions Solutions 1. Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2024. Calculate current ratio. Particulars ₹ I. Equity and Liabilities 1. … science of hitting a baseballWebAccounting questions and answers. Suppose 3M Company reported the following financial data for 2025 and 2024 (in millions). (a) Calculate the current ratio for \ ( 3 \mathrm {M} \) for 2025 and 2024 . (Round answers to 2 decimol places, es. 125:1.) Question: Suppose 3M Company reported the following financial data for 2025 and 2024 (in millions). pratt read tools llc