Question on: WAEC Accounting - 2007
Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \ \hline Premises & 100,000 \ Plant & 50,000\ Fixtures & 30,000\ Stock & 2,000 \ Debtor & 10,000\ Cash & 10,000\ Creditors & 20,000 \end{array}\)
Current ratio is
A
4 : 1
B
3 : 1
C
2 : 1
D
1 : 1
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Correct Option: D
Current ratio is calculated by dividing your current assets by your current liabilities.
current assets = stock + debtors + cash
2,000 + 10,000 + 10,000 = 22,000
\(\frac{22,000}{20,000}\) = 1.1
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