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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for calculating the Current Ratio?
💡 Hint: Think about what each term means.
Question 2
Easy
What is an ideal Current Ratio?
💡 Hint: What do we compare assets to?
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What does the Current Ratio indicate?
- A company's long-term debts
- A company's ability to pay short-term obligations
- The cash position of a company
💡 Hint: Think about what short-term obligations mean.
Question 2
True or False: A Current Ratio of 1:1 is considered financially healthy.
- True
- False
💡 Hint: Consider what the ideal ratio should be.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Using provided values: Current Assets = ₹360,000, Current Liabilities = ₹180,000. Calculate the Current Ratio and discuss what it indicates about the company's liquidity.
💡 Hint: Think about how the ratio reflects financial health against liabilities.
Question 2
A company has a Current Ratio of 1.5 but is facing cash flow issues. Identify potential factors that could lead to this scenario.
💡 Hint: Consider why a company might not be able to convert assets to cash quickly.
Challenge and get performance evaluation