A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2010 · Q211 Mark

A business has current liabilities of $4000 at its year end. The quick (acid test) ratio is 1.5:1 The current ratio is 2.25:1 What is the value of inventory (stock) held at the year end?

A$3000

B$4000

C$9000

D$15 000

✓ Correct answer

A: $3000

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Analysis and communication of accounting information and see which topics are most likely to come up next.

About this question

Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2010 Paper 1 Variant 2, question 21.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Analysis and communication of accounting informationFeb/Mar 20211m

The following information for a business was available at the end of its financial year. inventory $ 20 000 bank 840…

Analysis and communication of accounting informationFeb/Mar 20221m

What might cause a decrease in a company's non-current asset turnover?

Analysis and communication of accounting informationFeb/Mar 20221m

The following information for a limited company at 31 December 2021 is available. ordinary share capital $300000, ret…

Accounting for non-current assetsFeb/Mar 20231m

Non-current assets at the end of Year 1 were recorded at cost, $500000, and carrying value, $360000. During Year 2, c…

Reconciliation and verificationFeb/Mar 20231m

The cost of repainting a property was debited to the property account. Which type of error was made?

Reconciliation and verificationFeb/Mar 20231m

A trial balance does not balance. The difference has been entered in a suspense account. The following errors are fou…

← Browse all past-paper questions