A company's quick assets are $147,000 and its current liabilities are $143,000. This company's acid-test ratio is 1.03.

Question

Quizplus · Accepted Answer

The acid-test ratio, also known as the quick ratio, is calculated by dividing a company's quick assets (cash, marketable securities, and accounts receivable) by its current liabilities.

In this case: 
Quick assets = $147,000 
Current liabilities = $143,000

So the acid-test ratio = $147,000 / $143,000 = 1.03

Therefore, the statement "This company's acid-test ratio is 1.03" is true.

A Company's Quick Assets Are $147,000 and Its Current Liabilities