A-LevelAccountingAnalysis and communication of accounting information9706/12 · Feb/Mar 2020 · Q201 Mark

A business has the following current assets and current liabilities. trade receivables 6000 bank overdraft 1500 cash in hand 50 trade payables 5050 The only other item in the working capital is inventory. The current ratio is 2:1. What is the value of the inventory?

A$2550

B$4050

C$5550

D$7050

✓ Correct answer

D: $7050

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2020 Paper 1 Variant 2, question 20.

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