QUESTI Questions 3 and 4 refer to the financial data for QAABC Ltd, shown below. QAABC Ltd Account Balances (extract) for the year ended 30 June 2020 s000 Bank loan (due 30 September 2020) 1 287 Bank overdraft 582 Bond (due 30 April 2021) 1 200 Deposits at call 7 834 Inventories 2 398 Trade debtors I 569 Trade creditors 2933 Non-current assets 47 629 Non-current liabilities 13 764

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter6: Building And Maintaining Good Credit
Section6.1: Advantages And Disadvantages Of
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QUESTION 3
Which of the following results accurately determines that QAABC Ltd can meet its short-term debt obligations?
(A) 0.08:1
(B) 0.75:1
(C) 0.9:1
(D) 2.2:1
QUESTION 4
Calculate the ratio that determines QAABC Ltd's ability to meet its long-term financing obligations.
(A) 27.07%
(B) 30.62%
(C) 38.59%
(D) 79.34%
Transcribed Image Text:QUESTION 3 Which of the following results accurately determines that QAABC Ltd can meet its short-term debt obligations? (A) 0.08:1 (B) 0.75:1 (C) 0.9:1 (D) 2.2:1 QUESTION 4 Calculate the ratio that determines QAABC Ltd's ability to meet its long-term financing obligations. (A) 27.07% (B) 30.62% (C) 38.59% (D) 79.34%
QUESTIONS3-4
Questions 3 and 4 refer to the financial data for QAABC Ltd, shown below.
QAABC Ltd
Account Balances (extract)
for the year ended 30 June 2020
S000
Bank loan (due 30 September 2020)
1 287
582
Bank overdraft
Bond (due 30 April 2021)
1 200
Deposits at call
7 834
Inventories
2 398
Trade debtors
I 569
Trade creditors
2 933
Non-current assets
47 629
Non-current liabilities
13 764
Retained earnings
234
Note: The balance of trade debtors at 30 June 2019 was $2 572 000.
Transcribed Image Text:QUESTIONS3-4 Questions 3 and 4 refer to the financial data for QAABC Ltd, shown below. QAABC Ltd Account Balances (extract) for the year ended 30 June 2020 S000 Bank loan (due 30 September 2020) 1 287 582 Bank overdraft Bond (due 30 April 2021) 1 200 Deposits at call 7 834 Inventories 2 398 Trade debtors I 569 Trade creditors 2 933 Non-current assets 47 629 Non-current liabilities 13 764 Retained earnings 234 Note: The balance of trade debtors at 30 June 2019 was $2 572 000.
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