Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

June 2014 Question # 2(B)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › June 2014 Question # 2(B)

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 27, 2017 at 12:06 am #374426
    Ema
    Member
    • Topics: 73
    • Replies: 107
    • ☆☆

    Sir,

    when finding Quick ratio or Acid test Ratio the formula used is C.A-Inventory/ C.L, but when finding out target Quick ratio in this Question why aren’t we subtracting inventory?

    Thanks

    February 27, 2017 at 7:48 am #374476
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    But the answer does subtract inventory!!!!!

    The total current assets are 12,164,384 (8,219,178 (receivables) + 3,945,206 (inventory))

    The current assets without the inventory are simply the receivables of 8,219,178

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘June 2014 Question # 2(B)’ is closed to new replies.