1. Shihab Ltd the following information regarding its Current Assets and Current Liabilities: Current Assets Cash...

 

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1. Shihab Ltd the following information regarding its Current Assets and Current Liabilities: Current Assets Cash Debtors Bills Receivable Marketable Securities Prepaid Expenses Stock Total Current Liabilities Creditors Bills Payable Outstanding Expenses Total OMR 10,000 70,000 20,000 40,000 16,000 124,000 280,000 80,000 50,000 10,000 140,000 You are required to compute: (a) Current Ratio, (b) Quick Ratio, (c) And as an accountant, pass your opinion on the result of these ratios. 1. Shihab Ltd the following information regarding its Current Assets and Current Liabilities: Current Assets Cash Debtors Bills Receivable Marketable Securities Prepaid Expenses Stock Total Current Liabilities Creditors Bills Payable Outstanding Expenses Total OMR 10,000 70,000 20,000 40,000 16,000 124,000 280,000 80,000 50,000 10,000 140,000 You are required to compute: (a) Current Ratio, (b) Quick Ratio, (c) And as an accountant, pass your opinion on the result of these ratios.

Answer rating: 100% (QA)

To compute the ratios we will use the following formulas a Current Ratio Current Assets Current Liab... View the full answer