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

Analysis and communication of accounting information — practice question

On 31 March, the following details were given for a business. Inventories $225\,000$ Trade receivables $785\,000$ Cash and cash equivalents $15\,000$ Trade payables $365\,000$ Other payables $85\,000$ Calculate the acid test ratio.

  • A$1.78 : 1$
  • B$2.19 : 1$
  • C$2.28 : 1$
  • D$2.81 : 1$

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