Using the following balance sheet information, find the firm's acid-test ratio.
A) 0.60
B) 1.00
C) 1.40
D) 2.00

Name: Using the following balance sheet information, find the firm's acid-test ratio. A) 0.60 B) 1.00 C) 1.40 D) 2.00
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

The acid-test ratio is calculated by dividing the sum of cash, marketable securities, and accounts receivable by current liabilities. Without specific numbers, we can't calculate it exactly, but choice B (1.00) is a typical acid-test ratio for a firm with balanced liquidity.

Using the Following Balance Sheet Information, Find the Firm's Acid-Test