What is the current ratio of a company whose current assets are Rs. 6,40,000 and current liabilities are Rs. 2,80,000?

Step-by-step solution

1. Compute the current ratio by dividing current assets by current liabilities.
2. $\text{Current Ratio}=\frac{6,40,000}{2,80,000}=2.2857\approx 2.29$
3. The ratio indicates how many rupees of assets are available for each rupee of liabilities.

Concept tested: Current Ratio

Published 25 September 2026 · How this solution was prepared and checked