O-LevelAccountingAnalysis and interpretation7707/12 · Oct/Nov 2023 · Q321 Mark

A business has the following assets and liabilities. $ inventory 2000 trade receivables 4000 trade payables 1100 bank overdraft 3100 The owner plans to pay some of his own funds into the business bank account to increase the current ratio to 2: 1. How much does he need to pay into the business bank account to achieve this?

A$900

B$1200

C$1900

D$2200

✓ Correct answer

B: $1200

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2023 Paper 1 Variant 2, question 32.

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