A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2012 · Q211 Mark

What is not included in the calculation of the liquid ratio (acid test)?

Aaccruals for rent

Bamounts prepaid for insurance

Cinventory of finished goods

Dtrade payables

✓ Correct answer

C: inventory of finished goods

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2012 Paper 1 Variant 2, question 21.

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