Post Utme Igbinedion University 2018 Accounting Question 37

Practice objective / multiple choice question 37 from the 2018 Post Utme Igbinedion University Accounting examination.

Post Utme Igbinedion University 2018 Accounting Objective / Multiple Choice
Question 37 POST_UTME_IGBINEDION_UNIVERSITY • 2018 • ACCOUNTING • objective

A company's balance sheet shows a current ratio of 2:1. What does this indicate about the company's liquidity?

Answer Options

Correct Answer A. The company has sufficient liquidity to meet its short-term obligations
B. The company has insufficient liquidity to meet its short-term obligations
C. The company's liquidity position is uncertain
D. The company's liquidity position is not relevant to its financial health
Correct Answer
A
Correct Option:
The company has sufficient liquidity to meet its short-term obligations

About This Question

This is Post Utme Igbinedion University 2018 Accounting Question 37. It is one of the objective questions from the 2018 Post Utme Igbinedion University Accounting examination.

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