Off the Record's quick assets are $127,000.With current liabilities of $143,000,Off the Record's acid-test ratio is 1.03 to 1.

Name: Off the Record's quick assets are $127,000.With current liabilities of $143,000,Off the Record's acid-test ratio is 1.03 to 1.
Brand: Quizplus
Rating: 4.7 (32 reviews)

Question

Quizplus · Accepted Answer

The acid-test ratio is defined as (quick assets / current liabilities). In this case, the acid-test ratio would be ($127,000 / $143,000), which is approximately 0.89. Therefore, the statement is false.

Off the Record's Quick Assets Are $127,000