Haleem trading company is a popular distributor in Salala, having operations in the entire Oman. Over theseyears, the company has gained a very good public opinion and quiet a big number of loyal customers. Duringthe last year, the company has faced a serious liquidity crisis in the last year. The management of thecompany wants to check the liquidity ratios of the last year in order to plan for the current year. You are askedto help the management in computing the liquidity ratios.The Balance Sheet of Haleem trading company for the year ending 31-12-2020Equity and LiabilitiesOMRAssetsOMREquity Share CapitalCapital Reserve8% Loan on MortgageCreditorsBank overdraft40,000 Plant and Machinery8,000 Land and Buildings32,000 Fumiture & Fixtures16,000 Stock18,000 DebtorsInvestments (Short-term)Cash in hand24,00040,00016,00014,00014,0004,00014,000Profit and Loss A/c12,0001,26,0001,26,000Choose the Current ratio and Quick ratio from the following?O a. Current ratio is 2.43 and Quick ratio is 1.35O b. Current ratio is 1.35 and Quick ratio is 2.40O c. Current ratio is 1.35 and Quick ratio is 2O d. Current ratio is 2 and Quick ratio is 1.35

Current assets = Stock + Debtors + Short term investment + Cash = 14000+4000+14000+14000 = 46000…

Haleem trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced a serious liquidity crisis in the last year. The management of the company wants to check the liquidity ratios of the last year in order to plan for the current year. You are asked to help the management in computing the liquidity ratios. The Balance Sheet of Haleem trading company for the year ending 31-12-2020 Equity and Llabilities Equity Share Capital Capital Reserve 8% Loan on Mortgage OMR Assets OMR 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Fumiture & Fixtures 16,000 Stock 18,000 Debtors Investments (Short-term) Cash in hand 24,000 40,000 16,000 14,000 14,000 4,000 14,000 Creditors Bank overdraft Profit and Loss A/c 12,000 1,26,000 1,26,000 Choose the Current ratio and Quick ratio from the following? O a. Current ratio is 2.43 and Quick ratio is 1.35 O b. Current ratio is 1.35 and Quick ratio is 2.40 O c. Current ratio is 1.35 and Quick ratio is 2 O d. Current ratio is 2 and Quick ratio is 1.35

Haleem trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced a serious liquidity crisis in the last year. The management of the company wants to check the liquidity ratios of the last year in order to plan for the current year. You are asked to help the management in computing the liquidity ratios. The Balance Sheet of Haleem trading company for the year ending 31-12-2020 Equity and Llabilities Equity Share Capital Capital Reserve 8% Loan on Mortgage OMR Assets OMR 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Fumiture & Fixtures 16,000 Stock 18,000 Debtors Investments (Short-term) Cash in hand 24,000 40,000 16,000 14,000 14,000 4,000 14,000 Creditors Bank overdraft Profit and Loss A/c 12,000 1,26,000 1,26,000 Choose the Current ratio and Quick ratio from the following? O a. Current ratio is 2.43 and Quick ratio is 1.35 O b. Current ratio is 1.35 and Quick ratio is 2.40 O c. Current ratio is 1.35 and Quick ratio is 2 O d. Current ratio is 2 and Quick ratio is 1.35

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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