| N |
N |
| Capital 39,000 |
Land 20,000 |
| Long Term Loan 15, 000 |
Building 30,000 |
| Creditors 9,000 |
Stock 40,000 |
| |
Debtors 6,000 |
| Accrued wages 5,000 |
Cash 8, 000 |
| 68,000 |
68,000 |
Use the information above to answer the question
: The acid test ratio in the company is___________
Acid test ratio measures the liquidity position of a company after deduction stock (inventory) from current assets
Formula: current assets less inventory/current liabilities
18000 - 4000/14000 = 1 : 1