A-LevelAccountingAnalysis and Interpretation of Financial StatementsOct/Nov 2010Paper 1 Q231 Mark
A business has the following assets and liabilities. [Table showing non current (fixed) assets $420 000, inventory (stocks) $120 000, trade receivables (debtors) $310 000, subtotal $430 000, trade payables (creditors) $(220 000), net current assets $210 000, total assets less current liabilities $630 000, long term loan $(130 000), net assets $500 000] What is the business's quick (acid test) ratio?
A1.41 : 1
B1.95 : 1
C2.43 : 1
D3.86 : 1
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of analysis and interpretation of financial statements 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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