GT Company has $200 in cash, $500 in accounts receivable, and $700 in inventory. The company also has $200 in accounts payable and $200 in unearned sales revenue. What is the company's quick ratio?

Question

Quizplus · Accepted Answer

Quick Ratio = (Cash + Accounts Receivable) / Current Liabilities
Quick Ratio = ($200 + $500) / ($200 + $200)
Quick Ratio = $700 / $400
Quick Ratio = 1.75

GT Company Has $200 in Cash, $500 in Accounts Receivable