WAEC Financial Accounting 2012 Question 20

Use the following information to answer questions 18 to 20.
Balance Sheet as at 31st December, 2010
Capital ₦40,000; Less: Net loss ₦5,000 = ₦35,000; Less: drawings ₦2,000 = ₦33,000
Long term loan ₦20,000 (total ₦53,000)
Creditors ₦8,000
Accrued expenses ₦4,000
Total ₦65,000
Freehold premises ₦50,000
Stock ₦3,000
Debtors ₦4,000
Cash at bank ₦6,500
Cash in hand ₦1,500
Total ₦65,000
Acid test ratio is

1. A.5 : 4.
2. B.5 : 3.
3. C.4 : 5.
4. D.1 : 1.