Post Utme Bells University 2019 Commerce Question 2

Practice objective / multiple choice question 2 from the 2019 Post Utme Bells University Commerce examination.

Post Utme Bells University 2019 Commerce Objective / Multiple Choice
Question 2 POST_UTME_BELLS_UNIVERSITY • 2019 • COMMERCE • objective

A company's financial statements show that its current ratio is 2:1. However, the company's acid-test ratio is 1:1. What does this indicate about the company's liquidity position?

Answer Options

A. The company has a high level of liquidity.
Correct Answer B. The company has a low level of liquidity.
C. The company's liquidity position is uncertain.
D. The company's liquidity position is stable.
Correct Answer
B
Correct Option:
The company has a low level of liquidity.

About This Question

This is Post Utme Bells University 2019 Commerce Question 2. It is one of the objective questions from the 2019 Post Utme Bells University Commerce examination.

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