Purchasers - #44,880

Sales - #85,850

Trade creditors - #12,250

Trade debtors - #24,000

Accrued expenses - # 350

Prepaid expenses - # 700

Stock 1/1/2006 - #25,120

Stock 31/12/2006 - #27,840

Calculate the acid test ratio

  • A 1:94:1
  • B 1:96:1
  • C 1:1:94
  • D 1:1:96
jamb 2012accounting

The correct answer is B. 1:96:1

Acid test ratio = cash + cash equivalents + marketable securities + current accounts receivables / Total current liabilities

Previous question Next question