Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

Jake’s current liabilities consisted of trade payables, while his current assets were inventory, trade receivables and cash at bank. Which action would improve his current ratio?

  • Abuying additional inventory and paying in cash
  • Bdecreasing drawings
  • Crevaluing non-current assets
  • Dselling inventory on credit rather than for cash

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI