Waec Model Questions Vol1 2020 Financial Accounting Question 30

Practice objective / multiple choice question 30 from the 2020 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 30 WAEC_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

A company reports the following year‑end figures (all amounts in ₦):\nCurrent assets - Cash: 800,000; Accounts receivable: 1,200,000; Inventory: 950,000.\nCurrent liabilities - Accounts payable: 1,100,000; Short‑term loan: 400,000.\nDuring the year, inventory was found to be overstated by ₦50,000 and must be written down. Also, accounts payable was understated by ₦30,000 and needs to be increased. Compute the current ratio (Current Assets ÷ Current Liabilities) after these adjustments, rounding the answer to two decimal places.

Answer Options

Correct Answer A. 1.90
B. 1.60
C. 2.10
D. 1.75
Correct Answer
A
Correct Option:
1.90

About This Question

This is Waec Model Questions Vol1 2020 Financial Accounting Question 30. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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