Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

The extract below is taken from a company’s statement of financial position at 30 September. Non-current assets $120\,000$ Inventory $35\,000$ Trade receivables $23\,000$ Cash at bank (debit balance) $12\,000$ Trade payables $15\,000$ Bank loan repayable within 12 months $40\,000$ What is the liquid (acid test) ratio?

  • A$0.64:1$
  • B$1.27:1$
  • C$2.33:1$
  • D$4.67:1$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI