ACCT1501 - Exam (1 Viewer)

[twinshadow]

Hey everyone... I am stuck with these questions.. Any help will be appreciated!

V Ltd's records at year end showed that there were 60 units on hand at cost of $50 each. A stock count at year end found there were only 52 units of inventory on hand. V Ltd had sold 100 units of inventory in the last month of the year realising a net price of $45 after selling costs. Which of the following statements is true?

Select one:
a. Sales in the last month of the year $4 500
b. Loss of inventory $660
c. Inventory on hand at year end $2 600
d. Inventory on hand at year end $2 340


Design Ltd has $200 000 in current assets and $150 000 current liabilities. What would have been the impact on current ratio if the company borrows $50 000 from the bank as a long term loan, repayable in five years?
Select one:
a. Increase
b. Decrease
c. No change
d. Increase and decrease

 

[obliviousninja]

1. C. Not 100% sure.
2. B. 200/150 > 200/200 (iirc that the current ratio is A/L)

 

[twinshadow]

when in need of help, search all acct threads and post same question

That's what I've done, thanks kalstar

 

[twinshadow]

1. C. Not 100% sure.
2. B. 200/150 > 200/200 (iirc that the current ratio is A/L)

Yeah, the current ratio is A/L, now I get how to answer it, thanks!
With the number 1 question, I think it is either C or D