A-LevelAccountingFinancial RatiosMay/June 2022Paper 1 Q211 Mark
The following shows extracts from the statement of financial position of a company. at 30 September $ non-current assets 120 000 inventory 35000 trade receivables 23000 cash at bank (debit balance) 12000 trade payables 15000 bank loan repayable within 12 months 40000 What is the liquid (acid test) ratio?
A0.64:1
B1.27:1
C2.33:1
D4.67:1
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The correct answer is A. This question tests the candidate's understanding of financial ratios within the Accountingsyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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