Cash is $22,000, receivables are $51,000, inventory is $18,000, and current liabilities are $50,000. What is the quick ratio?
Correct Answer
B) 1.46.
Quick assets usually include cash and receivables, not inventory. ($22,000 + $51,000) / $50,000 = 1.46.
Why This Is the Correct Answer
Quick assets usually include cash and receivables, not inventory. ($22,000 + $51,000) / $50,000 = 1.46.
Why the Other Options Are Wrong
Option A: 1.10.
1.10. is below the supported result for quick ratio; it likely uses the wrong base, period, or account bucket.
Option C: 1.82.
1.82. is above the supported result for quick ratio; it likely adds an unsupported amount or compares the wrong financial base.
Option D: 0.68.
0.68. is below the supported result for quick ratio; it likely uses the wrong base, period, or account bucket.
Memory Technique
Quick Ratio drawer for Reviewing Liquidity: label assets before counting dollars.
Reference Hint
Study anchor (closed-book): memorize Quick ratio from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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