Use the following information to answer the given question $\begin{array}{c|c} & N & & N \ \hline \text{Ordinary Share Capital} & 140,000 & \text{Plant and Machinery} & 100,000 \ \text{80% Preference share} & 63,000 & \text{Furniture} & 62,000 \ \text{Retained earnings} & 40,000 & \text{Motor Van} & 75,000 \ \text{10% Debentures} & 60,000 & Stock & 22,000 \ Creditors & 10,000 & Debtors & 26,000 \ \text{Accrued wages} & 12,000& Bank & 40,000 \ & \overline{325,000} & & \overline{325,000}\end{array}$What is the quick ratio?

Question

Use the following information to answer the given question $\begin{array}{c|c} &amp; N &amp; &amp; N \ \hline \text{Ordinary Share Capital} &amp; 140,000 &amp; \text{Plant and Machinery} &amp; 100,000 \ \text{80% Preference share} &amp; 63,000 &amp; \text{Furniture} &amp; 62,000 \ \text{Retained earnings} &amp; 40,000 &amp; \text{Motor Van} &amp; 75,000 \ \text{10% Debentures} &amp; 60,000 &amp; Stock &amp; 22,000 \ Creditors &amp; 10,000 &amp; Debtors &amp; 26,000 \ \text{Accrued wages} &amp; 12,000&amp; Bank &amp; 40,000 \ &amp; \overline{325,000} &amp; &amp; \overline{325,000}\end{array}$What is the quick ratio?

Lessonnotes Admin · Accepted Answer

The answer is B. 3 : 1.