Neco 2021 Financial Accounting Question 10

Practice objective / multiple choice question 10 from the 2021 Neco Financial Accounting examination.

Neco 2021 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 10 NECO • 2021 • FINANCIAL_ACCOUNTING • objective

A company reports the following balances at year‑end (all figures in \(\text{₦}\)):\nCurrent assets - Cash \(25{,}000\), Accounts Receivable \(40{,}000\), Inventory \(35{,}000\).\nCurrent liabilities - Accounts Payable \(30{,}000\), Short‑term loan \(20{,}000\).\nNon‑current assets - Equipment \(80{,}000\) with accumulated depreciation \(20{,}000\).\nNon‑current liabilities - Long‑term loan \(50{,}000\).\nCapital \(70{,}000\), Retained earnings \(30{,}000\).\nProfit for the year \(15{,}000\); dividends paid \(5{,}000\). Compute (a) the working capital and (b) the current ratio.

Answer Options

Correct Answer A. 50000, 2.0
B. 50000, 1.5
C. 45000, 2.0
D. 55000, 2.2
Correct Answer
A
Correct Option:
50000, 2.0

About This Question

This is Neco 2021 Financial Accounting Question 10. It is one of the objective questions from the 2021 Neco Financial Accounting examination.

Difficulty level: Medium .

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