A company's current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. Its acid-test ratio equals:
A) 1.14.
B) 1.41.
C) .52.
D) 0.88.
E) 1.91.

Question

Quizplus · Accepted Answer

The acid-test ratio is calculated by dividing quick assets by current liabilities. Here, $13,890 (quick assets) divided by $12,220 (current liabilities) equals approximately 1.14.

A Company's Current Assets Are $23,420, Its Quick Assets Are