Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

The business shows the following assets and liabilities: inventory: $2000$ trade receivables: $4000$ trade payables: $1100$ bank overdraft: $3100$ The owner intends to inject some of his own money into the business bank account in order to raise the current ratio to $2 : 1$. What amount must he deposit into the business bank account to make this happen?

  • A$900$
  • B$1200$
  • C$1900$
  • D$2200$

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