Financial Statements

Ratios

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Financial Statements

X Ltd., has a current ratio of 2:1 and quick ratio of 1.5:1. If excess of current assets over quick assets represented by inventories is Rs. 24,000. Calculate current assets and current liabilities.

Current Assets Rs. 1,20,000 and Current Liabilities Rs. 48,000

Current Assets Rs. 72,000 and Current Liabilities Rs. 48,000

Current Assets Rs. 96,000 and Current Liabilities Rs. 48,000

Current Assets Rs. 96,000 and Current Liabilities Rs. 24,000

✅ Correct Option: 3

Let current liabilities be $x$ . Then $2x - 1.5x = 24{,}000$ , so $0.5x = 24{,}000$ and $x = 48{,}000$ . Current assets $= 2 \times 48{,}000 = 96{,}000$ .

2025: 13 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Liquidity Ratios	(I) Debt to Capital Employed Ratio
(B) Solvency Ratios	(II) Net profit ratio
(C) Activity Ratios	(III) Current Ratio
(D) Profitability Ratios	(IV) Working capital Turnover Ratio

Choose the correct answer from the options given below:

2022: 20 Aug Shift 2

Earning Capacity of a Company is measured by:

2026: 12 May Shift 1

Simrit Ltd. has a current ratio of 3.5:1 and quick ratio of 2:1. If excess of current assets over quick assets as represented by inventories is Rs. 24,000, What will be the current assets in this case?

2025: 13 May Shift 1

Quick Assets of the firm are:

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Inventories at the end and other current assets such as prepaid expenses, advance tax, etc. are not included in	(I) Advantage of Ratio Analysis
(B) Identification of problem areas	(II) Quick Assets
(C) Ratios are means to an end rather than the end by itself	(III) Current Ratio
(D) 2:1 is the benchmark of	(IV) Limitation of the ratios

Choose the correct answer from the options given below:

2022: 23 Aug Shift 2

The ideal Debt Equity Ratio is :

X Ltd., has a current ratio of 2:1 and quick ratio of 1.5:1. If excess of current assets over quick assets represented by inventories is Rs. 24,000. Calculate current assets and current liabilities.

Solution

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