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Acid-test ratio

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Question 38:

Erascible Company has $13,000 in cash, $10,800 in marketable securities, $31,000 in accounts receivable, $28,000 in inventories, and $30,000 in current liabilities. The company's current assets consist of cash, marketable securities, accounts receivable, and inventory. The company's acid-test ratio is closest to:

0.6
0.79
1.83
0.85

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Solution Summary

The solution explains how to calculate the acid-test ratio for Erascible Company.

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