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16 Wog. ka
I read with interest your article on the CPC, particularly since I intend to sit the exam myself.
I sincerely hope that if question 2 in your examples is any criterion, the RSA obtain their professional question writers post haste. If question 2 is right, none the offered answers is correct.
We are obviously meant to select answer b. However, this is not correct Current assets less stocks t( current liabilities is the "quick ratio or acid test." The liquidity ratio or current ratio is current asset to current liabilities.
The ratios are quite different, particularly when they are related to "long-term liquidity" as against "short-term liquidity."
Perhaps the RSA can enlighten us about which ratio they require and amenc their question or answers accordingly.
R E BRACKLEY,
Fordham, Ely,
Cambs.