Based on the above data, what is the quick ratio, rounded to one decimal point?
A) 2.7
B) 2.6
C) 1.7
D) 0.9

Name: Based on the above data, what is the quick ratio, rounded to one decimal point? A) 2.7 B) 2.6 C) 1.7 D) 0.9
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Question

Based on the above data, what is the quick ratio, rounded to one decimal point?
A) 2.7 
B) 2.6 
C) 1.7 
D) 0.9

Quizplus · Accepted Answer

Quick ratio is calculated as (Current Assets - Inventories - Prepaid Expenses) / Current Liabilities. Plugging in the given numbers, we get (94,279 - 19,274 - 2,500) / 54,923 = 1.67, which when rounded to one decimal point is 1.7. Hence, the correct option is C.

Based on the Above Data, What Is the Quick Ratio