Practice - Current Ratio
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Practice Questions
Test your understanding with targeted questions
What is the formula for calculating the Current Ratio?
💡 Hint: Think about what each term means.
What is an ideal Current Ratio?
💡 Hint: What do we compare assets to?
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Current Ratio indicate?
💡 Hint: Think about what short-term obligations mean.
True or False: A Current Ratio of 1:1 is considered financially healthy.
💡 Hint: Consider what the ideal ratio should be.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
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.
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.
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