A Level Accounting (9706)•9706/12/M/J/25
Explanation
Insufficient data for current ratio calculation Steps:
- Identify current assets and liabilities from given balances: net trade receivables = 2,000 = 5,000 (partial CL); trade payables = unknown part of CL.
- Apply current ratio formula: CA / CL = 2.5, so CA = 2.5 × CL.
- CL = trade payables + $5,000 + any other CL (unknown).
- CA = $78,000 + any other CA (unknown); cannot solve for trade payables without full totals.
Not enough information.
Final answer: Not enough information.
Topic: Analysis and communication of accounting information
Practice more A Level Accounting (9706) questions on mMCQ.me