WAEC Accounting 2019 Objective — Question 16
Question 16 of 50 from the West African Examinations Council (WAEC) Accounting 2019 Objective paper, with the correct answer and a full explanation.
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Quick ratio is calculated as x - y : z, where
- A. x = stock; y = current assets and z = long-term liabilities
- B. x = current assets; y = debtors and z = current liabilities
- C. x = current assets, y = stock and z = current liabilitiesCorrect
- D. x = debtors; y = current assets and z = current liabilities
Explanation
Quick ratio = Current asset stock/Current liabilities = (current asset - stock):current liabilities. Thus x=current assets, y=stock and z=current liabilities.
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