2. From the following, compute Current Ratio and Quick Ratio and as an accountant, pass your...

 

Transcribed Image Text:

2. From the following, compute Current Ratio and Quick Ratio and as an accountant, pass your opinion on the result of these ratios. Stock Sundry Debtors Cash-in-hand and Cash in Bank Bills Receivable Short-term Investments Prepaid Expenses Bank Overdraft Sundry Creditors Bills Payable Outstanding Expenses OMR 73,000 127,000 20,000 18,000 60,000 2,000 10,000 50,000 32,000 28,000 2. From the following, compute Current Ratio and Quick Ratio and as an accountant, pass your opinion on the result of these ratios. Stock Sundry Debtors Cash-in-hand and Cash in Bank Bills Receivable Short-term Investments Prepaid Expenses Bank Overdraft Sundry Creditors Bills Payable Outstanding Expenses OMR 73,000 127,000 20,000 18,000 60,000 2,000 10,000 50,000 32,000 28,000

Answer rating: 100% (QA)

To calculate the current ratio we need to divide the total current assets by the total current liabi... View the full answer