(begin{array}{c|c}
N & N \
hline
text{Capital 8000} & text{Plant and machinery5000} \
hline
text{Net profit 4000} & text{Motor van 4500} \
hline
text{Drawings 200} & text{Stock 2000} \
hline
text{Creditors 2000} & text{Debtor 1000} \
hline
text{Accruals 300} & text{Bank 100} \
hline
& text{Cash 600} \
hline
14100 & 14100 \
end{array})
What is the acid ratio?
N & N \
hline
text{Capital 8000} & text{Plant and machinery5000} \
hline
text{Net profit 4000} & text{Motor van 4500} \
hline
text{Drawings 200} & text{Stock 2000} \
hline
text{Creditors 2000} & text{Debtor 1000} \
hline
text{Accruals 300} & text{Bank 100} \
hline
& text{Cash 600} \
hline
14100 & 14100 \
end{array})
What is the acid ratio?
-
A.
1.13 : 1 -
B.
2 : 1 -
C.
4.75 : 1 -
D.
4.25 : 1