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CURRENT RATIO

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › CURRENT RATIO

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by AvatarMikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 21, 2016 at 3:43 pm #323737
    Avatarfazeel93
    Member
    • Topics: 71
    • Replies: 49
    • ☆☆

    I was wondering whether we should take the liabilities and assets of a disposal group which we would be presented in current liabilities and current assets respectively in current ratio calculation of the company

    June 21, 2016 at 4:34 pm #323741
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    I don’t categorically know but common sense says that you should omit the results, assets and liabilities from all the ratio analyses

    June 22, 2016 at 10:22 am #323795
    Avatarfazeel93
    Member
    • Topics: 71
    • Replies: 49
    • ☆☆

    What abt profit from discontinued operations should that be included in net profit?

    June 22, 2016 at 11:36 am #323797
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    What did you not understand about my post “I don’t categorically know but common sense says that you should omit the results, assets and liabilities from all the ratio analyses”?

    What do you interpret as the meaning of the word “results”?

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