Post Utme Unn 2018 Accounting Question 4

Practice objective / multiple choice question 4 from the 2018 Post Utme Unn Accounting examination.

Post Utme Unn 2018 Accounting Objective / Multiple Choice
Question 4 POST_UTME_UNN • 2018 • ACCOUNTING • objective

A company has the following balance sheet: Assets: Cash ₦ 100,000, Accounts Payable ₦ 50,000, Capital ₦ 150,000 Liabilities: Sales ₦ 500,000, Purchases ₦ 300,000, Rent ₦ 50,000 What is the correct formula to calculate the current ratio?

Answer Options

Correct Answer A. Current Ratio = (Current Assets / Current Liabilities)
B. Current Ratio = (Current Assets / Total Assets)
C. Current Ratio = (Total Liabilities / Current Liabilities)
D. Current Ratio = (Current Assets / Total Liabilities)
Correct Answer
A
Correct Option:
Current Ratio = (Current Assets / Current Liabilities)

About This Question

This is Post Utme Unn 2018 Accounting Question 4. It is one of the objective questions from the 2018 Post Utme Unn Accounting examination.

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