A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2010 · 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
A: 1.41 : 1
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