x

Subject - Accounting:

Financial Statement Analysis

MCQ - 287-289

Question:

Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has Rs. 2 million in sales and its current liabilities are Rs. 1 million. what is the value of company's current assets?

  1. 1,600,000
  2. 1,200,000
  3. 3,200,000
  4. 1,200,000

Correct Answer: A

Explanation:

Current ratio = current assets / current liabilities
Current assets = current ratio * current liabilities
= 1.6*1,000,000
= 1,600,000

Record Performance

355 MCQ for effective preparation of the test of Financial Statement Analysis of Accounting section.

Read the MCQ statement: Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has Rs. 2 million in sales and its current liabilitie .... rent assets? , keenly and apply the method you have learn through the video lessons for Financial Statement Analysis to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 287-289.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

Share This Page