{"id":49386,"date":"2024-04-15T22:55:00","date_gmt":"2024-04-15T22:55:00","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49386"},"modified":"2024-04-15T22:55:00","modified_gmt":"2024-04-15T22:55:00","slug":"if-the-current-ratio-of-a-firm-is-2-5-1-and-working-capital-is-rs-90000-then-the-amount-of-current-liabilities-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-the-current-ratio-of-a-firm-is-2-5-1-and-working-capital-is-rs-90000-then-the-amount-of-current-liabilities-will-be\/","title":{"rendered":"If the current ratio of a firm is 2.5 : 1 and working capital is Rs. 90,000 then the amount of current liabilities will be"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9707272f54d\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Rs. 2,25,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Rs. 1,35,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Rs. 60,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Rs. 36,000                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is A. Rs. 2,25,000.<\/p>\n<p>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. A higher current ratio indicates that a company has more liquid assets to cover its short-term obligations.<\/p>\n<p>Working capital is a measure of a company&#8217;s short-term financial health. It is calculated by subtracting current liabilities from current assets. A positive working capital indicates that a company has more current assets than current liabilities.<\/p>\n<p>In this case, the current ratio is 2.5 : 1 and working capital is Rs. 90,000. This means that the company has current assets of Rs. 225,000 and current liabilities of Rs. 90,000.<\/p>\n<p>The answer to the question is A. Rs. 2,25,000.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Rs. 2,25,000 is the correct answer. This is because the current ratio is 2.5 : 1 and working capital is Rs. 90,000. This means that the company has current assets of Rs. 225,000 and current liabilities of Rs. 90,000.<\/li>\n<li>Option B: Rs. 1,35,000 is incorrect. This is because the current ratio is 2.5 : 1 and working capital is Rs. 90,000. This means that the company has current assets of Rs. 225,000 and current liabilities of Rs. 90,000. Therefore, the current liabilities cannot be Rs. 1,35,000.<\/li>\n<li>Option C: Rs. 60,000 is incorrect. This is because the current ratio is 2.5 : 1 and working capital is Rs. 90,000. This means that the company has current assets of Rs. 225,000 and current liabilities of Rs. 90,000. <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n             <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>    <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> Therefore, the current liabilities cannot be Rs. 60,000.<\/li>\n<li>Option D: Rs. 36,000 is incorrect. This is because the current ratio is 2.5 : 1 and working capital is Rs. 90,000. This means that the company has current assets of Rs. 225,000 and current liabilities of Rs. 90,000. Therefore, the current liabilities cannot be Rs. 36,000.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/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":[],"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 of a firm is 2.5 : 1 and working capital is Rs. 90,000 then the amount of current liabilities 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-the-current-ratio-of-a-firm-is-2-5-1-and-working-capital-is-rs-90000-then-the-amount-of-current-liabilities-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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