Post Utme Noun 2022 Accounting Question 25

Practice objective / multiple choice question 25 from the 2022 Post Utme Noun Accounting examination.

Post Utme Noun 2022 Accounting Objective / Multiple Choice
Question 25 POST_UTME_NOUN • 2022 • ACCOUNTING • objective

A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the correct interpretation of the current ratio?

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 has a high level of liquidity
D. The company has a low level of liquidity
Correct Answer
A
Correct Option:
The company has sufficient liquidity to meet its short-term obligations

About This Question

This is Post Utme Noun 2022 Accounting Question 25. It is one of the objective questions from the 2022 Post Utme Noun Accounting examination.

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