\(\begin{array}{c|c}
N & N \\
\hline
\text{Capital 8000} & \text{Plant and machinery5000} \\
\hline
\text{Net profit 4000} & \text{Motor van 4500} \\
\hline
\text{Drawings 200} & \text{Stock 2000} \\
\hline
\text{Creditors 2000} & \text{Debtor 1000} \\
\hline
\text{Accruals 300} & \text{Bank 100} \\
\hline
& \text{Cash 600} \\
\hline
14100 & 14100 \\
\end{array}\)
What is the acid ratio?

A. 1.13 : 1  
B. 2 : 1
C. 4.75 : 1
D. 4.25 : 1

Show Answer Show Explanation

Correct Answer: A