Financial statements for Maraby Corporation appear below:

-Maraby Corporation's acid-test ratio at the end of Year 2 was closest to:

Question

Financial statements for Maraby Corporation appear below:

-Maraby Corporation's acid-test ratio at the end of Year 2 was closest to:

Quizplus · Accepted Answer

The acid-test ratio is calculated by dividing quick assets (cash, marketable securities, and receivables) by current liabilities. The ratio of 1.14 suggests that Maraby Corporation has $1.14 in liquid assets for every $1 of current liabilities, indicating a relatively healthy liquidity position.

Financial Statements for Maraby Corporation Appear Below