Acid test ratioForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Acid test ratioThis topic has 3 replies, 2 voices, and was last updated 9 years ago by MikeLittle.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts June 13, 2016 at 7:11 pm #322792 GvtftfMemberTopics: 25Replies: 698☆☆☆☆Mr Little, sir, which of the following two will decrease acid test ratio:1) Repaying some of payables by using cash from overdraft 2) Buying some materials using cash and these materials remain in records at the period end.Thanks in advance. June 14, 2016 at 11:56 pm #322956 MikeLittleKeymasterTopics: 27Replies: 23323☆☆☆☆☆The second oneThe first leaves current liabilities as unchanged so no affect on acid testThe second converts a current asset into inventory so the assets used in acid test are reducedOk? June 15, 2016 at 6:24 am #322975 GvtftfMemberTopics: 25Replies: 698☆☆☆☆Sir, its even more than ok 🙂 thank you! June 15, 2016 at 8:31 am #322997 MikeLittleKeymasterTopics: 27Replies: 23323☆☆☆☆☆You’re welcomeAuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In