Excerpts from Sydner Corporation's most recent balance sheet appear below:
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
-The acid-test (quick)ratio at the end of Year 2 is closest to:
A) 1.67
B) 1.00
C) 0.97
D) 1.25

Question

Excerpts from Sydner Corporation's most recent balance sheet appear below:
  Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
-The acid-test (quick)ratio at the end of Year 2 is closest to:
A) 1.67 
B) 1.00 
C) 0.97 
D) 1.25

Quizplus · Accepted Answer

Quick assets = Cash + Marketable securities + Accounts receivable + Short-term notes receivable
= $140 + $0 + $210 = $350
Acid-test (quick) ratio = Quick assets ÷ Current liabilities
= $350 ÷ $360 = 0.97 (rounded)

Excerpts from Sydner Corporation's Most Recent Balance Sheet Appear Below