Post Utme Bowen University 2020 Accounting Question 33

Practice objective / multiple choice question 33 from the 2020 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2020 Accounting Objective / Multiple Choice

Question 33 POST_UTME_BOWEN_UNIVERSITY • 2020 • ACCOUNTING • objective

A company's balance sheet shows a current ratio of 2:1. However, the company's liquidity ratio is 1:1. What is the reason for this discrepancy?

Answer Options

Correct Answer A. The company has a high level of inventory.

B. The company has a high level of accounts payable.

C. The company has a high level of cash.

D. The company has a high level of accounts receivable.

Correct Answer

Correct Option:

The company has a high level of inventory.

About This Question

This is Post Utme Bowen University 2020 Accounting Question 33. It is one of the objective questions from the 2020 Post Utme Bowen University Accounting examination.

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