WAEC Financial Accounting 1999 Question 27

Hopewell Limited – Balance Sheet as at 31st December, 1998
Ordinary Share Capital N140,000; 8% Preference share N63,000; Retained earnings N40,000; 10% Debentures N60,000; Creditors N10,000; Accrued wages N12,000; total N325,000
Plant and Machinery N100,000; Furniture N62,000; Motor Van N75,000; Stock N22,000; Debtors N26,000; Bank N40,000; total N325,000
What is the current ratio?

1. A.4:1
2. B.3:1
3. C.2:1
4. D.1:1.