What is Current Ratio?

Post category:Accountancy
Reading time:1 mins read

SOLUTION

Current Ratio explains the relationship between Current Assets and Current Liabilities of an enterprise. The formula for calculating the ratio is:
Current Ratio = Current Assets / Current Liabilities

Please Share This Share this content

You Might Also Like

What do you mean by Cumulative Preference Shares?

The Operating ratio of a company is 60%. State whether ‘Purchase of goods costing Rs. 20,000’ will increase, decrease or not change the operating ratio. (C.B.S.E. 2019. M.P.)

State any two grounds on the basis of which court may order for the dissolution of partnership firm. (C.B.S.E. 2019, Kerala)

Leave a Reply Cancel reply

Share this content