JAMB Accounting 2021 Objective — Question 11
Question 11 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2021 Objective paper, with the correct answer and a full explanation.
Advertisement
11. The difference between acid test and liquidity ratio is a. Working capital b. Stock c. Debtors d. All of the above
- A. Working capital
- B. StockCorrect
- C. Debtors
- D. All of the above
Explanation
The acid test (quick) ratio = (current assets - stock) / current liabilities, while the liquidity (current) ratio = current assets / current liabilities. The difference is stock.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.