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Acue Company reported current assets of P3,900,000 and current liabilities of P2,000,000 on its statement of financial position as of December 31, 2017. The following items may have been recorded incorrectly. The company uses the periodic inventory system. • Goods purchased costing P220,000 were shipped FOB shipping point by a vendor on December 26. Acue received and recorded the invoice on December 29, 2017. but the goods were not included in Acue's physical count of inventory because they were not received until January 4, 2018. • Goods purchased costing P200,000 were shipped FOB destination by a supplier on December 28. Acue received and recorded the invoice on December 31, but the goods were not included in Acue's 2017 physical count of inventory because they were not received until January 2, 2018. Goods held on consignment from Si Company were included in Acue's December 31, 2017. physical count of inventory at P130,000. What is the current ratio after corrections are made? O 2,11 to 1 O 229 to 1 O 2.22 to 1 O 2. 12 to 1

Acue Company reported current assets of P3,900,000 and current liabilities of P2,000,000 on its statement of financial position as of December 31, 2017. The following items may have been recorded incorrectly. The company uses the periodic inventory system. • Goods purchased costing P220,000 were shipped FOB shipping point by a vendor on December 26. Acue received and recorded the invoice on December 29, 2017. but the goods were not included in Acue's physical count of inventory because they were not received until January 4, 2018. • Goods purchased costing P200,000 were shipped FOB destination by a supplier on December 28. Acue received and recorded the invoice on December 31, but the goods were not included in Acue's 2017 physical count of inventory because they were not received until January 2, 2018. Goods held on consignment from Si Company were included in Acue's December 31, 2017. physical count of inventory at P130,000. What is the current ratio after corrections are made? O 2,11 to 1 O 229 to 1 O 2.22 to 1 O 2. 12 to 1

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Acue Company reported current assets of P3,900,000 and current liabilities of P2,000,000 on its statement of financial position as of December 31, 2017. The following items may have been recorded incorrectly. The company uses the periodic inventory system. Goods purchased costing P220.000 were shipped FOB shipping point by a vendor on December 26. Acue received and recorded the invoice on December 29, 2017. but the goods were not included in Acue's physical count of inventory because they were not received until January 4. 2018. • Goods purchased costing P200,000 were shipped FOB destination by a supplier on December 28. Acue received and recorded the invoice on December 31, but the goods were not included in Acue's 2017 physical count of inventory because they were not received until January 2, 2018. Goods held on consignment from Si Company were included in Acue's December 31, 2017, physical count of inventory at P130,000. What is the current ratio after corrections are made? O 2.11 to 1 2.29 to 1 02.22 to 1 O 2.12 to 1
Transcribed Image Text:Acue Company reported current assets of P3,900,000 and current liabilities of P2,000,000 on its statement of financial position as of December 31, 2017. The following items may have been recorded incorrectly. The company uses the periodic inventory system. Goods purchased costing P220.000 were shipped FOB shipping point by a vendor on December 26. Acue received and recorded the invoice on December 29, 2017. but the goods were not included in Acue's physical count of inventory because they were not received until January 4. 2018. • Goods purchased costing P200,000 were shipped FOB destination by a supplier on December 28. Acue received and recorded the invoice on December 31, but the goods were not included in Acue's 2017 physical count of inventory because they were not received until January 2, 2018. Goods held on consignment from Si Company were included in Acue's December 31, 2017, physical count of inventory at P130,000. What is the current ratio after corrections are made? O 2.11 to 1 2.29 to 1 02.22 to 1 O 2.12 to 1
What is the current ratio based on Acue's statement of financial position (before corrections are made)? O 1.95 to 1 O 1 to 1 O 0.51 to 1 0 184 to 1
Transcribed Image Text:What is the current ratio based on Acue's statement of financial position (before corrections are made)? O 1.95 to 1 O 1 to 1 O 0.51 to 1 0 184 to 1
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