CIMA BA3 · Chapter 13 · Question 1 of 10
A company has current assets of $48,600 and current liabilities of $27,000. What is its current ratio?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 1.8:1
Explanation
Current ratio = current assets / current liabilities = $48,600 / $27,000 = 1.8:1.
More Analysis of financial statements MCQs
- Q3A company's trade receivables at the year end are $36,000. Revenue, all on credit, was $292,000 and cost of sales was $219,000. What is…
- Q4A company made a gross profit of $72,000 on revenue of $240,000. Which of the following is correct?
- Q5A company has profit before interest and tax of $46,800, equity of $210,000 and non-current liabilities (long-term loans) of $50,000. What…
- Q6A company has long-term loans of $90,000 and equity of $210,000. What is its gearing ratio, measured as debt / (debt + equity)?
- Q7A company holds inventory of $27,000 at the year end. Cost of sales for the year was $219,000 and revenue was $292,000. What is the…