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Based on the Figures Below, What Is the Current Ratio

Question 2

Multiple Choice

Based on the figures below, what is the current ratio?
£ Inventory 6,000 Payables 12,000 Receivables 11,000 Non-current liabilities 16,000 Current portion of long-term borrowings 3,000 Cash 1,000 Taxation payable 5,000\begin{array}{lc} & £ \\\text { Inventory } & 6,000 \\\text { Payables } & 12,000 \\\text { Receivables } & 11,000 \\\text { Non-current liabilities } & 16,000 \\\text { Current portion of long-term borrowings } & 3,000 \\\text { Cash } & 1,000 \\\text { Taxation payable } & 5,000\end{array}


A) 0.50:1
B) 0.60:1
C) 0.75:1
D) 0.90:1

Correct Answer:

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