Accounting Multiple Choice Question – 22 March 2021

An extract from a company’s Balance Sheet is given below. 

What is the quick (acid test) ratio?

Select ONE answer:

1. 1.8  :  1
2. 2.2  :  1
3. 2.7  :  1
4. 3.5  :  1

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – (7,400 + 2,500) / (1,000 + 4,500) = 1.8
2. Not correct
3. Not correct
4. Not correct

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