{"id":45243,"date":"2024-04-15T21:55:15","date_gmt":"2024-04-15T21:55:15","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=45243"},"modified":"2024-04-15T21:55:15","modified_gmt":"2024-04-15T21:55:15","slug":"if-cash-is-rs-10000-closing-stock-is-rs-25000-debtors-is-rs-5000-creditors-is-rs-22000-and-bank-overdraft-is-rs-8000-then-the-current-ratio-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-cash-is-rs-10000-closing-stock-is-rs-25000-debtors-is-rs-5000-creditors-is-rs-22000-and-bank-overdraft-is-rs-8000-then-the-current-ratio-will-be\/","title":{"rendered":"If cash is Rs. 10,000, closing stock is Rs. 25,000, debtors is Rs. 5000, creditors is Rs. 22,000 and bank overdraft is Rs. 8000, then the current ratio will be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;03:04&#8243; option2=&#8221;04:03&#8243; option3=&#8221;02:01&#8243; option4=&#8221;01:02&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. 3 : 4.<\/p>\n<p>The current ratio is a liquidity ratio that measures a company&#8217;s ability to pay its short-term obligations. It is calculated by dividing current assets by current liabilities.<\/p>\n<p>In this case, the current assets are Rs. 10,000 + Rs. 5000 + Rs. 25,000 = Rs. 40,000. The current liabilities are Rs. 22,000 + Rs. 8000 = Rs. 30,000. Therefore, the current ratio is 40,000 \/ 30,000 = 4 : 3.<\/p>\n<p>Option B is incorrect because the current ratio is not 4 : 3. Option C is incorrect because the current ratio is not 2 : 1. Option D is incorrect because the current ratio is not 1 : 2.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;03:04&#8243; option2=&#8221;04:03&#8243; option3=&#8221;02:01&#8243; option4=&#8221;01:02&#8243; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-45243","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If cash is Rs. 10,000, closing stock is Rs. 25,000, debtors is Rs. 5000, creditors is Rs. 22,000 and bank overdraft is Rs. 8000, then the current ratio will be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-cash-is-rs-10000-closing-stock-is-rs-25000-debtors-is-rs-5000-creditors-is-rs-22000-and-bank-overdraft-is-rs-8000-then-the-current-ratio-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If cash is Rs. 10,000, closing stock is Rs. 25,000, debtors is Rs. 5000, creditors is Rs. 22,000 and bank overdraft is Rs. 8000, then the current ratio will be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;03:04&#8243; 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