A Company’s Current Assets are Rs. 8,00,000 and its current liabilities are Rs.4,00,000. Subsequently, it purchased goods for Rs. 1,00,000 on credit. Current ratio will be
A. 2 : 1
B. 2.25 : 1
C. 1.8:1
D. 1.6:1
Answer:C
A Company’s Current Assets are Rs. 8,00,000 and its current liabilities are Rs.4,00,000. Subsequently, it purchased goods for Rs. 1,00,000 on credit. Current ratio will be
A. 2 : 1 B. 2.25 : 1 C. 1.8:1 D. 1.6:1