Use the following information to answer the giv... - WAEC Accounting 1991 Question
Use the following information to answer the given question
\(\begin{array}{c|c} & DR & CR \ & N & N \ \hline \text{Goodwill} & 10,000 & \ \text{Plant and Machinery} & 32,000& \ \text{Freehold premises} & 50,000& \ stock & 15,000& \ debtors & 12,500 & \ \text{Cash in bank} & 7,500 & \ \text{cash in hand} & 2,000 & \ \text{Profit and loss account} & & 34,000 \ \text{Accrued rent} & & 500 \ \text{Sundry creditors} & & 9500 \ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
Current ratio
\(\begin{array}{c|c} & DR & CR \ & N & N \ \hline \text{Goodwill} & 10,000 & \ \text{Plant and Machinery} & 32,000& \ \text{Freehold premises} & 50,000& \ stock & 15,000& \ debtors & 12,500 & \ \text{Cash in bank} & 7,500 & \ \text{cash in hand} & 2,000 & \ \text{Profit and loss account} & & 34,000 \ \text{Accrued rent} & & 500 \ \text{Sundry creditors} & & 9500 \ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
Current ratio
A
4.9 : 1
B
4.1 : 1
C
3.0 : 1
D
3.7: 1
correct option: d
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