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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Terminology
Hi John,
This may sound a little silly but just need a little claifications. I get all the ratios and understand what they mean roughly. But in some questions I’m expected to work out say the current ratio but I’ve can’t see the current assets and liabilities easily in the question.
Would the current liabilities be the receivables and assets the payables.
Also what would be the long term capital, share capital and non current liabilities.
In your lectures it all make’s sense and easy to understand but then in actual exam questions you get thrown our completely when they’ve hidden the information
Receivables are an asset – not a liability!!!!
Current assets are receivables, inventories and cash.
Current liabilities are payables and overdraft.
Long-term capital is share capital (plus reserves) + non-current liabilities.