Accounting Multiple Choice Question – 6 December 2023

Which actions would improve the liquidity (acid test) ratio of Alex Trading Ltd in the short term?

• receivables paying their debts
• delaying paying payables
• selling a number of surplus non-current assets
• selling inventory

Select ONE answer:

1. 1 and 2
2. 2 and 3
3. 1 and 4
4. 3 and 4

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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