Given the following balance sheet information, what is the quick ratio?
$\begin{array}{lrlc}
\text { Cash } & \$ 50,000 & \text { Accounts payable } & \$ 50,000 \
\text { Inventory } & 50,000 & \text { Accrued expenses } & 25,000 \
\text { Accounts receivable } & \underline {50,000} & \text { Short-term loan } & \underline {25,000} \
\text { Total Current Assets } & \$ 150,000 & \text { Total Current Liabilities } & \$ 100,000
\end{array}$
A) 0.5
B) 1.0
C) 1.5
D) None of the above

Question

Quizplus · Accepted Answer

The quick ratio is calculated as (Cash + Accounts Receivable) / Total Current Liabilities = ($50,000 + $50,000) / $100,000 = 1.0.

Given the Following Balance Sheet Information, What Is the Quick