Current liabilities of a company were Rs.2,00,000 and its current ratio was 2.5 : 1. After this the company paid Rs. 1,00,000 to a trade payable. The current ratio after the payment will be :
A. 2 : 1
B. 4 : 1
C. 5 : 1
D. None of the above
Answer:A
Current liabilities of a company were Rs.2,00,000 and its current ratio was 2.5 : 1. After this the company paid Rs. 1,00,000 to a trade payable. The current ratio after the payment will be :
A. 2 : 1 B. 4 : 1 C. 5 : 1 D. None of the above