1.The acid test ratio in year 2021 is as follows:A. 1,72:1B. 2,61:1C. 1,94: 1D. 1,26:1E. 1.31:1 The following information is extracted from the accounting records of Wango Ltd:20212020R RShare capital: Ordinaryshares82 000 114 000Sales100 000 120 000Interest expense2 0003 000Dividends4 0004 500Profit before tax42 00049 000Income tax expenseRetained earnings16 00018 00048 50023 500Revaluation surplus10 0007 000Current assets71 00080 000Total assets145 000 172 000Current liabilities27 20026 300Inventory36 60024 300

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Business

Accounting

acid test ratio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1.The acid test ratio in year 2021 is as follows:

A. 1,72:1
B. 2,61:1
C. 1,94: 1
D. 1,26:1
E. 1.31:1

The following information is extracted from the accounting records of Wango Ltd:
2021
2020
R R
Share capital: Ordinary
shares
82 000 114 000
Sales
100 000 120 000
Interest expense
2 000
3 000
Dividends
4 000
4 500
Profit before tax
42 000
49 000
Income tax expense
Retained earnings
16 000
18 000
48 500
23 500
Revaluation surplus
10 000
7 000
Current assets
71 000
80 000
Total assets
145 000 172 000
Current liabilities
27 200
26 300
Inventory
36 600
24 300

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