The working capital requirement of a business is ₹80,000; current ratio is 2:1. Current assets will be: MCQ with Answer and Explanation

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The working capital requirement of a business is ₹80,000; current ratio is 2:1. Current assets will be:

A. ₹80,000

B. ₹40,000

C. ₹1,20,000

D. ₹1,60,000

Answer: Option D

Solution (By JKSSB Mock Tests)

Working capital = CA - CL = 80,000; CA/CL = 2 => CA = 2CL. Then 2CL - CL = 80,000 => CL = 80,000; CA = 1,60,000.

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

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