Post Utme Madonna University 2023 Accounting Question 18

Practice objective / multiple choice question 18 from the 2023 Post Utme Madonna University Accounting examination.

Post Utme Madonna University 2023 Accounting Objective / Multiple Choice
Question 18 POST_UTME_MADONNA_UNIVERSITY • 2023 • ACCOUNTING • objective

A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦150,000 and its current liabilities are ₦75,000, what is the correct formula for the current ratio?

Answer Options

Correct Answer A. Current Assets ÷ Current Liabilities
B. Current Liabilities ÷ Current Assets
C. (Current Assets - Current Liabilities) ÷ Current Liabilities
D. (Current Assets + Current Liabilities) ÷ Current Assets
Correct Answer
A
Correct Option:
Current Assets ÷ Current Liabilities

About This Question

This is Post Utme Madonna University 2023 Accounting Question 18. It is one of the objective questions from the 2023 Post Utme Madonna University Accounting examination.

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