Use the information below to answer this question. \(\begin{array}{c|c} \text{Stock} & 11,250 \\ \hline \text{Debtors}...
FINANCIAL
JAMB 2015
Use the information below to answer this question.
\(\begin{array}{c|c}
\text{Stock} & 11,250 \\
\hline
\text{Debtors} & 18,750 \\
\hline
\text{Creditors} & 3,750 \\
\hline
\text{Bank} & 4,000 \\
\hline
\text{Net profit} & 7,500 \\
\hline
\text{Net} & 60,000 \\
\end{array}\)
Calculate the acid test ratio
- A. 5 : 1
- B. 6 : 1
- C. 6 : 1 : 1
- D. 4 : 1
Correct Answer: C. 6 : 1 : 1
Explanation
given that acid test ratio is:
\(\frac {\text{Current assets
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