A firm's current ratio is 2.5:1. If current assets are ₹5,00,000, current liabilities are: MCQ with Answer and Explanation

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A firm's current ratio is 2.5:1. If current assets are ₹5,00,000, current liabilities are:

A. ₹2,00,000

B. ₹2,50,000

C. ₹5,00,000

D. ₹1,25,000

Answer: Option A

Solution (By JKSSB Mock Tests)

2.5 = 5,00,000 / CL => CL = 5,00,000 / 2.5 = ₹2,00,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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In the ledger, what is the meaning of 'c/d'?

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Correct Answer: Option A

Explanation:
'Carried down' indicates the balancing figure at the end of a period, which will be brought down (b/d) at the start of the next period.

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Correct Answer: Option B

Explanation:
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Correct Answer: Option C

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