Day: October 13, 2023

Accounting Multiple Choice Question – 13 October 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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

  • non-current assets – £30,000
  • working capital ratio – 5:1
  • capital – £34,000
  • current liabilities – £1,000

What is the amount of the current assets?

Select ONE answer:

  1. £1,000
  2. £5,000
  3. £6,000
  4. £20,000

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 2

  1. Not correct
  2. Correct == > A-L = C therefore £30k – £1k = £29k thus CA are £5k or wcr of 5:1 means £5k / £1K = 5:1
  3. Not correct
  4. Not correct

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