A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2024 · Q221 Mark

A business provided the following information at 31 March. inventories 225 000 trade receivables 785 000 cash and cash equivalents 15000 trade payables 365 000 other payables 85 000 What is the acid test ratio?

A1.78:1

B2.19:1

C2.28:1

D2.81:1

✓ Correct answer

A: 1.78:1

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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 2024 Paper 1 Variant 2, question 22.

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