Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

George gave the figures below. non-current assets: \$1500 inventory: \$1200 trade receivables: \$1800 trade payables: \$800 His liquid (acid test) ratio was $1.2:1$. What amount of bank overdraft did he have?

A\$7000
B\$1500
C\$1700
D\$2900

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