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
Correct Answer: Option B
Explanation
Acid test ratio = cash + cash equivalents + marketable securities + current accounts receivables / Total current liabilities