Freiman Corporation's most recent balance sheet and income statement appear below: The acid-test ratio at the end of Year 2 is closest to:

Name: Freiman Corporation's most recent balance sheet and income statement appear below: The acid-test ratio at the end of Year 2 is closest to:
Brand: Quizplus
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Question

Freiman Corporation's most recent balance sheet and income statement appear below:   The acid-test ratio at the end of Year 2 is closest to:

Quizplus · Accepted Answer

Acid-test ratio = Quick assets* ÷ Current liabilities
= $380 ÷ $280 = 1.36 (rounded)
*Quick assets = Cash + Marketable securities + Accounts receivable + Short-term notes receivable
= $160 + $0 + $220 + $0 = $380

Freiman Corporation's Most Recent Balance Sheet and Income Statement Appear