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
- 1:94:1
-
1:96:1
- 1:1:94
- 1:1:96
The correct answer is: B
Explanation
Acid test ratio = cash + cash equivalents + marketable securities + current accounts receivables / Total current liabilities