Use the following information to answer the given question (begin{array}{c|c} & N \ hline Sales…

Use the following information to answer the given question
(begin{array}{c|c} & N \ hline Sales & 200,000 \ text{Opening Stock} & 20,000 \ purchases & 140,000 \ text{Closing Stock} & 10,000 \ Expenses & 10,000\ Bank & 10,000 \ Capital & 85,000 \ Creditors & 35,000 \ Debtors & 50,000 \ text{Fixtures and fittings, cost} & 10,000 \ text{Freehold land and building} & 70,000 \ Drawings & 10,000end{array})
Acid test ratio is
  • A.
    1.8 : 1
  • B.
    1.7 : 1
  • C.
    1,5 : 1
  • D.
    1.2 : 1
Correct Answer: Option B
Explanation
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