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WAEC Accounting 2012 Objective — Question 20

Question 20 of 50 from the West African Examinations Council (WAEC) Accounting 2012 Objective paper, with the correct answer and a full explanation.

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(Using the same information as Q18) Acid test ratio is

  • A. 5:4
  • B. 5:3
  • C. 4:5
  • D. 1:1Correct

Explanation

Acid test ratio = (Current asset−Stock)/Current liabilities. (Per the printed answer key the correct choice is labelled D, 1:1.)

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