GK
ACCOUNTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rs. 1,00,000
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Rs. 1,20,000
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Rs. 1,40,000
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Rs. 1,60,000
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Detailed explanation-1: -Now, C.A = 2 x 60000 = Rs. 120000.
Detailed explanation-2: -Generally, a working capital ratio of less than one is taken as indicative of potential future liquidity problems, while a ratio of 1.5 to two is interpreted as indicating a company is on the solid financial ground in terms of liquidity. An increasingly higher ratio above two is not necessarily considered to be better.
Detailed explanation-3: -Answer: The Current Assets is Rs. 1, 00, 000 and Current Liabilities is Rs. 40, 000.
Detailed explanation-4: -Working capital = current assets – current liabilities. Net working capital = current assets (minus cash)-current liabilities (minus debt). Operating working capital = current assets – non-operating current assets. Non-cash working capital = (current assets – cash) – current liabilities.