A company's current assets are $23,420,its quick assets are $13,890 and its current liabilities are $12,220.Its acid-test ratio equals:
A)0.88.
B)1.91.
C)1.14.
D)0.52.
E)1.41.

Name: A company's current assets are $23,420,its quick assets are $13,890 and its current liabilities are $12,220.Its acid-test ratio equals: A)0.88. B)1.91. C)1.14. D)0.52. E)1.41.
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Question

Quizplus · Accepted Answer

Acid-test ratio = (Quick Assets) / (Current Liabilities)
Acid-test ratio = 13,890 / 12,220
Acid-test ratio = 1.14

A Company's Current Assets Are $23,420,its Quick Assets Are $13,890