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

In which category following items will be classified while preparing the Cash Flow Statement of a Bank? (i) Purchase of Computer (ii) Interest and Dividend received by the Bank.

At what rate interest on Calls-in-Arrear can be charged by a Company according to Table F of Schedule I of the Companies Act, 2013?

Give any two examples of cash inflows from operating activities other than cash receipts from sale of goods and rendering of services. (C.B.S.E. Sample Paper. 2018).

Leave a Reply Cancel reply

Share this content