{"id":53107,"date":"2024-04-15T23:49:11","date_gmt":"2024-04-15T23:49:11","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=53107"},"modified":"2024-04-15T23:49:11","modified_gmt":"2024-04-15T23:49:11","slug":"x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be\/","title":{"rendered":"X Ltd has a liquid ratio of 2 : 1. If its stock is Rs. 40,000, and its current liabilities are of Rs. 1,00,000, its current ratio will be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;1.4 times&#8221; option2=&#8221;2.4 times&#8221; option3=&#8221;1.2 times&#8221; option4=&#8221;3.4 times&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. 1.4 times.<\/p>\n<p>The liquid ratio is a measure of a company&#8217;s ability to meet its short-term obligations. It is calculated by dividing the company&#8217;s current assets by its current liabilities. A liquid ratio of 2 : 1 means that the company has 2 rupees of current assets for every 1 rupee of current liabilities.<\/p>\n<p>The current ratio is a measure of a company&#8217;s ability to meet its short-term obligations. It is calculated by dividing the company&#8217;s current assets by its current liabilities. A current ratio of 1.4 times means that the company has 1.4 rupees of current assets for every 1 rupee of current liabilities.<\/p>\n<p>To calculate the current ratio for X Ltd, we need to know the value of its current assets and its current liabilities. We are given that the value of its stock is Rs. 40,000 and its current liabilities are of Rs. 1,00,000. Therefore, the current ratio for X Ltd is:<\/p>\n<p>Current ratio = Current assets \/ Current liabilities = 40,000 \/ 1,00,000 = 1.4 times<\/p>\n<p>Therefore, the correct answer is A. 1.4 times.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;1.4 times&#8221; option2=&#8221;2.4 times&#8221; option3=&#8221;1.2 times&#8221; option4=&#8221;3.4 times&#8221; 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":[952],"tags":[],"class_list":["post-53107","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>X Ltd has a liquid ratio of 2 : 1. If its stock is Rs. 40,000, and its current liabilities are of Rs. 1,00,000, its 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\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-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=\"X Ltd has a liquid ratio of 2 : 1. If its stock is Rs. 40,000, and its current liabilities are of Rs. 1,00,000, its current ratio will be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;1.4 times&#8221; option2=&#8221;2.4 times&#8221; option3=&#8221;1.2 times&#8221; option4=&#8221;3.4 times&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:49:11+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":"X Ltd has a liquid ratio of 2 : 1. If its stock is Rs. 40,000, and its current liabilities are of Rs. 1,00,000, its current ratio will be","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\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be\/","og_locale":"en_US","og_type":"article","og_title":"X Ltd has a liquid ratio of 2 : 1. If its stock is Rs. 40,000, and its current liabilities are of Rs. 1,00,000, its current ratio will be","og_description":"[amp_mcq option1=&#8221;1.4 times&#8221; option2=&#8221;2.4 times&#8221; option3=&#8221;1.2 times&#8221; option4=&#8221;3.4 times&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T23:49:11+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\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be\/","url":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be\/","name":"X Ltd has a liquid ratio of 2 : 1. If its stock is Rs. 40,000, and its current liabilities are of Rs. 1,00,000, its current ratio will be","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T23:49:11+00:00","dateModified":"2024-04-15T23:49:11+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-has-a-liquid-ratio-of-2-1-if-its-stock-is-rs-40000-and-its-current-liabilities-are-of-rs-100000-its-current-ratio-will-be\/#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":"X Ltd has a liquid ratio of 2 : 1. If its stock is Rs. 40,000, and its current liabilities are of Rs. 1,00,000, its current ratio will be"}]},{"@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\/53107","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=53107"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/53107\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=53107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=53107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=53107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}