{"id":48707,"date":"2024-04-15T22:45:09","date_gmt":"2024-04-15T22:45:09","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=48707"},"modified":"2024-04-15T22:45:09","modified_gmt":"2024-04-15T22:45:09","slug":"what-are-the-current-assets-if-the-current-ratio-is-2-5-liquid-ratio-is-1-5-and-the-working-capital-is-rs-60000","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/what-are-the-current-assets-if-the-current-ratio-is-2-5-liquid-ratio-is-1-5-and-the-working-capital-is-rs-60000\/","title":{"rendered":"What are the current assets if the current ratio is 2.5, liquid ratio is 1.5, and the working capital is Rs. 60,000?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 60,000&#8243; option2=&#8221;Rs. 80,000&#8243; option3=&#8221;Rs. 1,00,000&#8243; option4=&#8221;Rs. 1,20,000&#8243; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is C. Rs. 1,00,000.<\/p>\n<p>The current ratio is a measure of a company&#8217;s liquidity, or its ability to meet its short-term obligations. It is calculated by dividing current assets by current liabilities. The liquid ratio is a more stringent measure of liquidity, and it is calculated by dividing current assets minus inventory by current liabilities.<\/p>\n<p>The working capital is the difference between current assets and current liabilities. It is a measure of a company&#8217;s ability to meet its short-term obligations.<\/p>\n<p>We are given that the current ratio is 2.5, the liquid ratio is 1.5, and the working capital is Rs. 60,000. We can use these values to solve for the current assets.<\/p>\n<p>The current ratio is equal to current assets divided by current liabilities. We are given that the current ratio is 2.5, so we can write the following equation:<\/p>\n<p>Current assets \/ Current liabilities = 2.5<\/p>\n<p>We are also given that the working capital is Rs. 60,000. The working capital is equal to current assets minus current liabilities. We can substitute this into the equation to get the following equation:<\/p>\n<p>Current assets &#8211; Current liabilities = Rs. 60,000<\/p>\n<p>We are also given that the liquid ratio is 1.5. The liquid ratio is equal to current assets minus inventory divided by current liabilities. We can substitute this into the equation to get the following equation:<\/p>\n<p>Current assets &#8211; Inventory = 1.5 * Current liabilities<\/p>\n<p>We can substitute the value of the current ratio into this equation to get the following equation:<\/p>\n<p>Current assets &#8211; Inventory = 1.5 * 2.5 * Current liabilities<\/p>\n<p>We can simplify this equation to get the following equation:<\/p>\n<p>Current assets &#8211; Inventory = 3.75 * Current liabilities<\/p>\n<p>We are given that the working capital is Rs. 60,000. We can substitute this into the equation to get the following equation:<\/p>\n<p>Current assets &#8211; Inventory = 3.75 * Current liabilities = Rs. 60,000<\/p>\n<p>We can solve this equation for current assets to get the following equation:<\/p>\n<p>Current assets = 3.75 * Current liabilities + Inventory<\/p>\n<p>We are given that the current liabilities is Rs. 60,000. We can substitute this into the equation to get the following equation:<\/p>\n<p>Current assets = 3.75 * Rs. 60,000 + Inventory<\/p>\n<p>We are also given that the inventory is Rs. 40,000. We can substitute this into the equation to get the following equation:<\/p>\n<p>Current assets = 3.75 * Rs. 60,000 + Rs. 40,000<\/p>\n<p>We can simplify this equation to get the following equation:<\/p>\n<p>Current assets = Rs. 1,00,000<\/p>\n<p>Therefore, the current assets are Rs. 1,00,000.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 60,000&#8243; option2=&#8221;Rs. 80,000&#8243; option3=&#8221;Rs. 1,00,000&#8243; option4=&#8221;Rs. 1,20,000&#8243; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-48707","post","type-post","status-publish","format-standard","hentry","category-costing","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>What are the current assets if the current ratio is 2.5, liquid ratio is 1.5, and the working capital is Rs. 60,000?<\/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\/what-are-the-current-assets-if-the-current-ratio-is-2-5-liquid-ratio-is-1-5-and-the-working-capital-is-rs-60000\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What are the current assets if the current ratio is 2.5, liquid ratio is 1.5, and the working capital is Rs. 60,000?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 60,000&#8243; 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