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Dear Sir,
I am working on F3 practise book and I have come across a slight issue with regards to Ratios
I have the following:
Current ratio which is current assets/ current liabilities . I did my working correct (201/188) = 1.07. The answer on the book is 1.1:1
How do convert my answer in the above format?
Many thanks in advance.
Caroline
Given that you have posted your question in the Paper PM forum, I assume that you are studying for Paper PM. If so, then I am very puzzled that you are using a Paper FA (the new name for Paper F3) book. Very little of Paper FA is relevant for Paper PM – you should be using a Paper PM Revision Kit from one of the ACCA approved publishers.
Assuming that you have copied the figures correctly, then the current ratio is indeed 1.07 (which can also be written as 1.07:1. It doesn’t matter which way you write it). It would seem that the answer in your book has simply rounded it to one decimal place i.e. 1.1.
Whether you are studying for Paper FA or Paper PM, do watch our free lectures for the relevant paper. The lectures are a complete free course and cover everything needed to be able to pass the exam well. You only then need a Revision Kit in order to get lots of question practice, which is vital to passing the exam.
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