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O-LevelAccountingAnalysis and interpretation7707/12 · Oct/Nov 2019 · Q291 Mark

Which ratio measures liquidity?

Agross profit/ sales
Bnet profit/ sales
Cquick ratio (acid test ratio)
Dreturn on capital employed

✓ Correct answer

C: quick ratio (acid test ratio)

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About this question

Topic
Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, Oct/Nov 2019 Paper 1 Variant 2, question 29.

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