The 2020and 2021 Partial Balance Sheets for Ottoman Industries Is

question 140

Multiple Choice

The 2020and 2021 partial balance sheets for Ottoman Industries is shown below. Calculate the current ratio for 2021.

• A)0.47
• B)0.62
• C)1.37
• D)2.20

---

Definitions:

Direct Method

A cash flow statement preparation approach that lists major operating cash receipts and payments, providing a clear view of operating cash flows.

Comparative Balance Sheets

Financial statements that display the financial position of a business at different points in time side-by-side, allowing for comparison.

Direct Method

An approach in cost accounting where only the direct costs of a department are allocated to its cost objects, ignoring any interdepartmental allocations.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid out.