Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › What current ratio is normally considered safe?
What current ratio is normally considered safe?
A0.5 : 1
B1 : 1
C2 : 1
D10 : 1
Answer & Solution
Correct answer: C. 2 : 1
A 2 : 1 ratio leaves a safety margin against uncertainty in realising current assets.
Related questions
DuPont analysis multiplies several ratios to give which measure?Which 1934 book by Graham and Dodd is central to fundamental analysis?What makes ratios hard to compare across countries?Ratios are of limited use unless they are what?Which ratio type measures investor response to owning a company's stock?The P/E ratio mainly reflects what?Market price Rs. 96 and EPS Rs. 8. What is the price earning ratio?Dividend per share is Rs. 3 and EPS is Rs. 12. What is the dividend payout ratio?