Day: November 10, 2021

A business calculated that its quick (acid test) ratio is lower this year than last year.

What caused the reduction in the ratio?

Select ONE answer:

1. an increase in creditors
2. an increase in stock
3. an increase in debtors
4. an increase in bank

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
2. Not correct
3. Not correct
4. Not correct

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