Doubt
While computing current ratio whether we have to consider working capital loan (OCC) also in current liability or not.. Please clarify to compute exact CR.
narasimham (sr manager) (24 Points)
14 December 2013Doubt
While computing current ratio whether we have to consider working capital loan (OCC) also in current liability or not.. Please clarify to compute exact CR.
Mukul
(CA FINAL)
(66 Points)
Replied 16 December 2013
Working Capital Loans Primarily are Short Term in Nature, as taking Long Term Loans for Working Capital Requirements is not Preferred.
Hence, Working Capital Loans will be considered as a Current Liability and will be considered in Computing Current Ratio
Mukul Jatwani
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