WAEC Accounting 2013 Objective — Question 28
Question 28 of 50 from the West African Examinations Council (WAEC) Accounting 2013 Objective paper, with the correct answer and a full explanation.
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A low current ratio is a business indicates that the business is
- A. faced with long term loan repayment problem
- B. efficient in the utilization of its resources
- C. unable to pay its bills on timeCorrect
- D. growing its net asset effectively
Explanation
When a company has low current account, it indicates that the company has liquidity problem which means that it may not be able to pay up its cash obligations as soon as they are due.
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