A quick ratio of 1.5 to 1 indicates that quick assets are more than adequate to meet current obligations.

Name: A quick ratio of 1.5 to 1 indicates that quick assets are more than adequate to meet current obligations.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

A quick ratio of 1.5 to 1 indicates that for every dollar of current liabilities, there are $1.50 of quick assets available to meet those obligations. This is considered a healthy ratio as it suggests that the company can easily pay off its short-term debts.

A Quick Ratio of 1