Neco Model Questions Vol1 2021 Financial Accounting Question 35
Practice objective / multiple choice question 35 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
The ledger accounts of ABC Ltd for the month ended 31 March have the following opening balances (debit unless stated): Cash ₦120,000; Accounts Receivable ₦80,000; Inventory ₦150,000; Current Liabilities ₦200,000 (credit). During the month the following cash transactions occurred:\n\n- Received cash from customers ₦50,000.\n- Paid cash for inventory purchases ₦70,000.\n- Sold inventory costing ₦90,000 for cash ₦130,000.\n- Paid cash for expenses ₦20,000.\n\nNo other transactions affect the above accounts. Compute the closing balances of Cash, Accounts Receivable and Inventory, and then calculate the current ratio (Current Assets ÷ Current Liabilities) at month‑end. Express the current ratio to two decimal places.
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 35. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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