Financial statements for Marcalo Company appear below:
-Marcalo Company's acid-test ratio at the end of Year 2 was closest to:
A) 1.08
B) 2.05
C) 0.49
D) 0.32

Question

Financial statements for Marcalo Company appear below:  
-Marcalo Company's acid-test ratio at the end of Year 2 was closest to:
A) 1.08 
B) 2.05 
C) 0.49 
D) 0.32

Quizplus · Accepted Answer

The acid-test ratio is calculated by dividing quick assets (cash, marketable securities, and receivables) by current liabilities. Without specific figures, we assume the correct choice is based on typical financial analysis, and 1.08 is a reasonable acid-test ratio for a company.

Financial Statements for Marcalo Company Appear Below