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A generally acceptable Current Ratio is:
A2:1
B1.5:1
C1:1
D3:1
Answer & Solution
Correct answer: A. 2:1
1. Current Ratio = Current Assets / Current Liabilities.
2. A generally acceptable benchmark is 2:1.
3. Interpretation varies by industry, but 2:1 is the standard textbook threshold.
_Source: ICAI BoS CA Inter Paper 6A, Ch 3 "Financial Analysis and Planning — Ratio Analysis", §3.1(a)_
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