Based on the above data, what is the quick ratio, rounded to one decimal point?

Question

Quizplus · Accepted Answer

The quick ratio is calculated by taking the current assets (excluding inventory) divided by current liabilities. In the given data, the current assets (excluding inventory) are $21,225 (cash of $8,000 + accounts receivable of $7,325 + prepaid expenses of $5,900), and the current liabilities are $12,600 (accounts payable of $9,400 + wages payable of $2,200 + taxes payable of $1,000). Therefore, the quick ratio is 1.68 ($21,225/$12,600), which rounded to one decimal point is 1.7. Option C is the correct answer.

Based on the Above Data, What Is the Quick Ratio