{"id":49304,"date":"2024-04-15T22:53:46","date_gmt":"2024-04-15T22:53:46","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49304"},"modified":"2024-04-15T22:53:46","modified_gmt":"2024-04-15T22:53:46","slug":"if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/","title":{"rendered":"If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 60,000&#8243; option2=&#8221;Rs. 1,00,000&#8243; option3=&#8221;Rs. 1,20,000&#8243; option4=&#8221;Rs. 1,80,000&#8243; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: B. Rs. 1,00,000<\/p>\n<p>Current ratio is a measure of a company&#8217;s liquidity. It is calculated by dividing current assets by current liabilities. A current ratio of 2 : 1 means that the company has 2 rupees of current assets for every 1 rupee of current liabilities.<\/p>\n<p>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>Given that the current ratio is 2 : 1 and working capital is Rs. 60,000, we can calculate the current assets as follows:<\/p>\n<p>Current assets = Working capital \/ Current ratio<br \/>\n= Rs. 60,000 \/ 2<br \/>\n= Rs. 1,00,000<\/p>\n<p>Option A is incorrect because it is the value of working capital, not current assets.<\/p>\n<p>Option C is incorrect because it is twice the value of current assets.<\/p>\n<p>Option D is incorrect because it is three times the value of current assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 60,000&#8243; option2=&#8221;Rs. 1,00,000&#8243; option3=&#8221;Rs. 1,20,000&#8243; option4=&#8221;Rs. 1,80,000&#8243; correct=&#8221;option2&#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-49304","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>If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?<\/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-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 60,000&#8243; option2=&#8221;Rs. 1,00,000&#8243; option3=&#8221;Rs. 1,20,000&#8243; option4=&#8221;Rs. 1,80,000&#8243; correct=&#8221;option2&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T22:53:46+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/","og_locale":"en_US","og_type":"article","og_title":"If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?","og_description":"[amp_mcq option1=&#8221;Rs. 60,000&#8243; option2=&#8221;Rs. 1,00,000&#8243; option3=&#8221;Rs. 1,20,000&#8243; option4=&#8221;Rs. 1,80,000&#8243; correct=&#8221;option2&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T22:53:46+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/","url":"https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/","name":"If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T22:53:46+00:00","dateModified":"2024-04-15T22:53:46+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-is-2-1-and-working-capital-is-rs-60000-what-is-the-value-of-the-current-assets\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"Costing","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/costing\/"},{"@type":"ListItem","position":3,"name":"If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/49304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=49304"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/49304\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=49304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=49304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=49304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}