Waec Model Questions Vol1 2024 Financial Accounting Question 1
Practice objective / multiple choice question 1 from the 2024 Waec Model Questions Vol1 Financial Accounting examination.
The trial balance of a sole trader for the year ended 31 December 2024 includes the following items (all figures in ₦): Cash 50,000; Accounts receivable 30,000; Inventory 45,000; Prepaid rent 12,000; Equipment 80,000; Accumulated depreciation - Equipment 20,000; Accounts payable 25,000; Bank loan (long‑term) 40,000; Capital 100,000; Revenue 150,000; Salaries expense 45,000; Rent expense 18,000. Additional information: (i) Equipment is depreciated on a straight‑line basis over 5 years with no residual value; (ii) Bad debts expense for the year is 2 % of accounts receivable. Compute the current ratio (current assets ÷ current liabilities) at year‑end, rounding the answer to two decimal places.
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This is Waec Model Questions Vol1 2024 Financial Accounting Question 1. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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