In the bathroom addition file, cash is $28,000, receivables are $44,000, inventory is $16,000, and current liabilities are $60,000. What is the quick ratio?
Correct Answer
D) 1.20.
Quick assets are cash plus receivables: $28,000 + $44,000 = $72,000. $72,000 / $60,000 = 1.20.
Why This Is the Correct Answer
Quick assets are cash plus receivables: $28,000 + $44,000 = $72,000. $72,000 / $60,000 = 1.20.
Why the Other Options Are Wrong
Option A: 0.47.
0.47 leaves out the $44,000 receivables. The correct calculation is 28,000 + 44,000 = 72,000; 72,000 / 60,000 = 1.20.
Option B: 1.47.
1.47 includes the $16,000 inventory (88,000 / 60,000), which gives the current ratio; quick assets exclude inventory. The correct calculation is 28,000 + 44,000 = 72,000; 72,000 / 60,000 = 1.20.
Option C: 0.83.
0.83 divides $60,000 current liabilities by 72,000 from the first step, inverting the ratio. The correct calculation is 28,000 + 44,000 = 72,000; 72,000 / 60,000 = 1.20.
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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A site checklist requires 31 separate SDS records, one for each listed product. It contains 27 valid records corresponding to 27 different listed products, with no duplicates or shared SDS entries. How many required records are missing?
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