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

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

The quick ratio formula is (cash + marketable securities + accounts receivable) / current liabilities. 
Using the data provided, we have:

Quick ratio = (22,000 + 12,000 + 10,000) / 20,000 = 2.2

Rounding to one decimal point, the answer is C) 1.7, which is the closest choice to 2.2.

Based on the Above Data, What Is the Quick Ratio