All. The current ratio is greater than 1:1. What would be the impact on the company's accounting ratios of buying an extra three weeks of goods from suppliers on credit, immediately before the year end? (a) Increase in current ratio; increase in acid test ratio; decrease in the inventory (stock) holding period. (b) Decrease in current ratio: decrease in acid test ratio; increase in the inventory (stock) holding period. (c) No change in current ratio; decrease in acid test ratio, decrease in the inventory (stock) holding period. (d) Decrease in current ratio, increase in acid test ratio: increase in the inventory (stock) holding period. Al2 Which of the following defines Prime cost? (a) Direct labour plus indirect materials and other indirect costs. (b) Indirect labour plus direct materials and other direct costs. (c) Direct labour plus factory overhead and other costs. (d) Direct labour plus direct materials and other direct costs. A13 Which of the following best defines the contents of a master budget? (a) A budgeted balance sheet. (b) A budgeted balance sheet and profit and loss account. (c) A budgeted balance sheet, profit and loss account and cash flow statement. (d) A budgeted organisation chart, profit and loss account and cash flow statement. A14 The planned sales volume is 900 units per month. The planned inventory (stock) at the start of the month is 50 units and the planned inventory (stock) at the end of the month is 40 units. The cost per unit is 10. What is the amount of the purchases budget for the month? (a) 8,900 (b) 9,000 (c) 9,100 (d) 9,900