Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

At 30 September 2022, a company gave the balances shown below. cash held in hand $150$ bank loan - due for repayment on 31 December 2022 $2000$ bank loan - due for repayment on 1 May 2024 $3000$ bank overdraft $400$ trade receivables total $8000$ other receivables total $275$ inventory valued at $24\,000$ trade payables total $6000$ other payables total $95$ What was the value of the current ratio?

  • A$1:1$
  • B$2.83:1$
  • C$3.82:1$
  • D$4.06:1$

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