Evaluation and Interpretion
In the year 2013
Khind Holdings Berhad has RM1.64 of current assets to pay its RM1.00
current liabilities. The ratio 1.64:1 shows that the capability of the company to
pay its obligations is quite good.
1. Current Ratio =
= 1.64 : 1
2. Quick Ratio =
Current AssetPrepaid ExpensesInventory
Comparison Between The Performance of Khind
Holdings Berhad in Year 2013 and Year 2014
In overall, Khind Holdings Berhad had a better performance in the year 2013
than the year 2014. This can be seen in the analysis of financial statements.
Test 1 Accounting II
1. Which of the following should be deducted from net income in calculating net cash flow
from operating activities using the indirect method?
a. a decrease in inventory
b. a decrease in accounts payable
c. preferred dividends d