A company's quick assets are $147,000 and its current liabilities are $143,000. This company's acid-test ratio is 1.03.
$147,000/$143,000 = 1.03

Question

Quizplus · Accepted Answer

The acid-test ratio formula is (quick assets/current liabilities). Plugging in the numbers from the problem, we get (147,000/143,000) = 1.03, which matches the given acid-test ratio of 1.03. Therefore, the statement is true.

A Company's Quick Assets Are $147,000 and Its Current Liabilities