Accounting Multiple Choice Question – 18 August 2023

The following information has been taken from a recent statement of financial position of Alex ltd:

• non-current assets – £150,000
• Capital – £170,000
• current liabilities – £5,000

What is the current ratio?

Select ONE answer:

1. 3 : 1
2. 4 : 1
3. 5 : 1
4. 6 : 1

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – NCA + CA – CL = C == > £170k – (£150k – £5k) = £25k == > £25k / £5k = 5 : 1
4. Not correct

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