A manufacturing firm has current assets worth Rs. 7,80,000 and current liabilities of Rs. 3,10,000. What is its current ratio?

easy 1 mark Class 12 · Accountancy · Analysis of Financial Statements

Answer

2.52

The correct answer is 2.52 — $\frac{7 , 80 , 000}{3 , 10 , 000} = 2.516 \approx 2.52$ – we round to two decimal places because the question does not specify any other rounding rule.

Step-by-step solution

Divide the value of current assets by the value of current liabilities.
$\frac{7 , 80 , 000}{3 , 10 , 000} = 2.516 \approx 2.52$ – we round to two decimal places because the question does not specify any other rounding rule.

Common mistake: Dividing the numbers in the wrong order (liabilities ÷ assets).

Concept tested: Liquidity ratio – Current Ratio

Published 1 October 2026 · How this solution was prepared and checked

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