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
\(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 \\ Debtor & 10,000\\ Cash & 10,000\\ Creditors & 20,000 \end{array}\)
Current ratio is
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Correct Answer: Option D
Explanation:
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
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