Nickolls Corporation has provided the following financial data:

-The company's acid-test (quick)ratio is closest to:
A) 2.47
B) 2.83
C) 3.10
D) 4.25

Question

Nickolls Corporation has provided the following financial data:
 
-The company's acid-test (quick)ratio is closest to:
A) 2.47 
B) 2.83 
C) 3.10 
D) 4.25

Quizplus · Accepted Answer

Acid-test (quick) ratio = Quick assets* ÷ Current liabilities
= $473,000 ÷ $167,000 = 2.83 (rounded)
*Quick assets = Cash + Marketable securities + Current receivables
= $188,000 + $0 + $285,000 = $473,000

Nickolls Corporation Has Provided the Following Financial Data