A firm has $400,000 in cash,$250,000 in accounts receivable,and $700,000 in current liabilities.Its quick ratio is ________.
A) 0.36
B) 0.57
C) 0.93
D) 1.14

Name: A firm has $400,000 in cash,$250,000 in accounts receivable,and $700,000 in current liabilities.Its quick ratio is ________. A) 0.36 B) 0.57 C) 0.93 D) 1.14
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Quizplus · Accepted Answer

The quick ratio is calculated as (Cash + Accounts Receivable) / Current Liabilities. Here, it is ($400,000 + $250,000) / $700,000 = $650,000 / $700,000 = 0.93.

A Firm Has $400,000 in Cash,$250,000 in Accounts Receivable,and $700,000