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Commerce · Q1452

Accounting

Graduate and Post Graduate · Commerce · question 1452

Q1452

Consider the following information: Share capital Rs. 2,00,000 Long term debts Rs. 1,00,000 Current liabilites Rs. 40,000 Fixed assets Rs. 1,80,000 Current assets Rs. 1,60,000 The Solvency ratio of the business is

Consider the following information:
Share capital Rs. 2,00,000
Long term debts Rs. 1,00,000
Current liabilites Rs. 40,000
Fixed assets Rs. 1,80,000
Current assets Rs. 1,60,000

The Solvency ratio of the business is
A.
2.43 : 1
Answer
B.
3 : 2
C.
3.4 : 1.7
D.
4.75 : 1.43

Answer: Option A

Solution

Answer: Option A
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