ACC501 GDB Solution
Wednesday, November 10, 2010 Posted In Acc Edit This
A-20,000 B-10,000
Liquidity
A-2
B-1.125
Net Working Capital = Current Assets - Current Liabilities
Company A = 40000 - 20000 = 20000
Company B = 90000 - 80000 = 10000
On liquidity term Company A is better than Company B
Liquidity Ratio = Current Assets / Current Liabilities
Liquidity Ratio A = 40000/20000 = 2
Liquidity Ratio B = 90000/80000 = 1.125
Answer is :- A
Liquidity
A-2
B-1.125
Net Working Capital = Current Assets - Current Liabilities
Company A = 40000 - 20000 = 20000
Company B = 90000 - 80000 = 10000
On liquidity term Company A is better than Company B
Liquidity Ratio = Current Assets / Current Liabilities
Liquidity Ratio A = 40000/20000 = 2
Liquidity Ratio B = 90000/80000 = 1.125
Answer is :- A
