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\(\begin{array}{c|c} & N \\ \hline Sales & 200,000 \\ \text{...

Use the following information to answer the given question

NSales200,000Opening Stock20,000purchases140,000Closing Stock10,000Expenses10,000Bank10,000Capital85,000Creditors35,000Debtors50,000Fixtures and fittings, cost10,000Freehold land and building70,000Drawings10,000 Acid test ratio is

A.

1.8 : 1

B.

1.7 : 1

C.

1.5 : 1

D.

1.2 : 1

Correct answer is B

No explanation has been provided for this answer.