Post Utme Futo 2023 Commerce Question 18

Practice objective / multiple choice question 18 from the 2023 Post Utme Futo Commerce examination.

Post Utme Futo 2023 Commerce Objective / Multiple Choice
Question 18 POST_UTME_FUTO • 2023 • COMMERCE • objective

A company's financial statements show that its current ratio is 2.5 and its acid-test ratio is 1.2. What can be inferred about the company's liquidity position?

Answer Options

Correct Answer A. The company has a strong liquidity position
B. The company has a weak liquidity position
C. The company's liquidity position is uncertain
D. The company's liquidity position is not relevant
Correct Answer
A
Correct Option:
The company has a strong liquidity position

About This Question

This is Post Utme Futo 2023 Commerce Question 18. It is one of the objective questions from the 2023 Post Utme Futo Commerce examination.

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