Interpretation of accounts using ratios - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 41:

• JAMB 2021

Use the information below to answer this question
Zahki Plc balance sheet (extract) as at 31st December 1997.
₦ ₦
Paid up capital 200,000 Fixed assets 300,000
Share premium 15,000
Profit and loss account 60,000 Investment 180,000
Long-term loan 180,000 Stock 28,000
Debtors 90,000
Creditors 200,000 provision(3000) 87,000
Other current liabilities 100,000 Cash 60,000
Bank 100,000
755,000 755,000
The quick ratio is


A. 0.82:1
B. 1:53:1
C. 0.95:1
D. 0.91:1