• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

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

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Kit Question Kaplan

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Kit Question Kaplan

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 24, 2021 at 10:20 am #638968
    maximus07
    Participant
    • Topics: 407
    • Replies: 398
    • ☆☆☆☆

    It says to find quick acid ratio
    Current asset 528855
    Inventory 109400
    Current liabilities 430680
    Taxation liability 55000

    It is simply dividing, (CA-Inventory/CL) which give 0.97.

    Why it is not subtracting Taxation from current liability as it clearly says in book that quick liabilities does not include taxation as it is paid in period more than 6 weeks (1.5 months).

    October 24, 2021 at 3:02 pm #638997
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51576
    • ☆☆☆☆☆

    I have no idea why your book has said that – you need to ask Kaplan.

    What I state in my lectures is correct and is that all current liabilities are included in the calculation. There are no such things as ‘quick liabilities’ – liabilities are either current or non-current, and if the tax is payable within 6 weeks it is a current liability (and tax would almost certainly always be a current liability!

    October 25, 2021 at 3:09 am #639028
    maximus07
    Participant
    • Topics: 407
    • Replies: 398
    • ☆☆☆☆

    Professor, do we subtract Prepaid Expenses also in the nominator?

    October 25, 2021 at 8:49 am #639047
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51576
    • ☆☆☆☆☆

    No – it is all current assets (except for inventory) divided by all current liabilities.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • baraka42 on PM Chapter 13 Questions Standard Costing and Basic Variance Analysis
  • baraka42 on PM Chapter 13 Questions Standard Costing and Basic Variance Analysis

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy