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Analysis of Financial Statements — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsBook Keeping & AccountancyAnalysis of Financial Statements2 Marks
Question
Usually, the current ratio should be 3 : 1.
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Answer

This statement is False.
Usually, the current ratio should be 2 : 1. It means current assets are double of current liabilities. It shows the short-term solvency of business enterprises.

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