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Question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Question

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarMikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 30, 2017 at 3:27 pm #404389
    Avatarnatty2
    Participant
    • Topics: 39
    • Replies: 56
    • ☆☆

    Hi mike
    I don’t understand why the answer is A I would say inventory is taken from the quick ratio instead of current can you help me please

    Inventory is harder to liquidate therefore it is eliminated from this ratio.

    A. current ratio
    B. quick ratio

    August 30, 2017 at 3:34 pm #404393
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    It’s taken from the current ratio in order to arrive at the figures for use in the quick ratio

    OK?

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    Posts
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