CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 107 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 107
Topic #: 1

[All CIMAPRA17-BA3-1 Questions]

ABC produces accounts to the year ended 31 December annually Extracts from the most recent financial statements are.

Which of the following ratios is a liquidity ratio?

ADebt/Equity x 100%

BOperating profit/Capital employed x 100%

CRevenue/Capital employed

DCurrent assets/Current liabilities

Show Suggested Answer

Suggested Answer: D

by Robt at Feb 12, 2025, 02:14 PM

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Cordelia

7 days ago

D) Current assets/Current liabilities is the liquidity ratio. Easy peasy lemon squeezy.

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Kerrie

9 days ago

I don't know, but I'm pretty sure I can calculate the ratio with my eyes closed. Just kidding, D is the right answer.

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Arthur

10 days ago

Haha, I bet the person who wrote this question is really good at balancing their own checkbook. D is the way to go.

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Donte

19 days ago

Definitely D. Liquidity ratios measure a company's ability to meet its short-term financial obligations. Current assets divided by current liabilities is the classic liquidity ratio.

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Mila

1 months ago

I believe the answer is D) Current assets/Current liabilities because it measures the company's ability to pay off short-term debts.

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Willard

1 months ago

I agree, it's important to know how to calculate liquidity ratios for financial analysis.

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Ula

1 months ago

I think the question about liquidity ratio is quite straightforward.

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Honey

1 months ago

D) Current assets/Current liabilities is the correct liquidity ratio. This tells us how well the company can pay off its short-term obligations.

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Polly

1 months ago

User2

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Tammara

1 months ago

User1

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