The following balance sheet information is provided for Greene Company for Year 2:

What is the company's quick (acid-test)ratio? (Round your answer to 1 decimal place. )
A)0.7
B)1.4
C)1.3
D)3.8

Question

The following balance sheet information is provided for Greene Company for Year 2:

What is the company's quick (acid-test)ratio? (Round your answer to 1 decimal place. )
A)0.7 
B)1.4 
C)1.3 
D)3.8

Quizplus · Accepted Answer

Quick ratio = Quick assets ÷ Current liabilities
Quick ratio = (Cash + Receivables + Current marketable securities)÷ Current liabilities
Quick ratio = ($5,400 + $15,500 + $0)÷ ($4,500 + $11,500)= $20,900 ÷ $16,000 = 1.3

The Following Balance Sheet Information Is Provided for Greene Company