The Statement of Financial Position of Rosie Ltd

question 26

Multiple Choice

The statement of financial position of Rosie Ltd.includes the following entries: inventory £25,000,trade receivables £12,000,cash £11,000 and current liabilities £25,000 (made up of trade payables £16,000,short-term borrowing £800 and £8,200 current tax payable) .Calculate the liquidity ratio.

• A) 0.9: 1
• B) 1:1
• C) 0.4:1
• D) 1.9:1

---

Definitions:

Reading A Magazine

The activity of browsing through a magazine, which is a periodical publication containing articles, photographs, and advertisements on various subjects.

Call Reports

Documentation created by salespeople detailing the insights, outcomes, and follow-up actions from their sales calls or visits to potential clients.

Promotional Material

Items designed to advertise a product, service, or company, ranging from brochures and flyers to online ads and merchandise.

Account Analysis

The process of analyzing each prospect and customer to maximize the chances of reaching a sales goal.