Use the following to answer the given question, \(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 ...

Nyocha: WAEC SSCE - Financial Accounting - 2007 (Objective) Ihe Ọmụmụ: Financial Accounting

Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 \\ Debtor & 10,000\\ Cash & 10,000\\ Creditors & 20,000 \end{array}\)
Current ratio is

4 : 1

3 : 1

2 : 1

1 : 1

Akọwa Nkọwa

To find the current ratio, we need to divide the total current assets by the total current liabilities. Total current assets = Stock + Debtor + Cash = ₦2,000 + ₦10,000 + ₦10,000 = ₦22,000 Total current liabilities = Creditors = ₦20,000 Current ratio = Total current assets / Total current liabilities = ₦22,000 / ₦20,000 = 1.1 : 1 Therefore, the current ratio is 1 : 1. Note: The current ratio of 2:1 is generally considered a healthy ratio for a business. However, it varies based on industry standards and specific business requirements.

Gụọ akwụkwọ nkuzi na Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

Lee Azịza

Use the following to answer the given question, \(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 ...

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