A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2016 · Q201 Mark

Which item is included in the current ratio but not the liquid (acid test) ratio?

Acash at bank

Binventory

Ctrade payables

Dtrade receivables

✓ Correct answer

B: inventory

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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 2016 Paper 1 Variant 2, question 20.

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