Given the Following Information What Is the Quick Ratio?
A)0

question 23

Multiple Choice

Given the following information: $\begin{array}{lr}\text { Inventory } & \$ 500 \\\text { Short-term marketable securities } & 100 \\\text { Cash } & 200 \\\text { Prepaid insurance } & 300 \\\text { Accounts receivable } & 400 \\\text { Currentliabilities } & 400\end{array}$ What is the quick ratio?

• A)0.75 times
• B)1.75 times
• C)2.5 times
• D)3.75 times

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Definitions:

Usage of Trade

Established customs and practices commonly observed and accepted in a particular industry or trade.

UCC

The Uniform Commercial Code, which is a comprehensive set of laws governing sales and commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across the country.

Suretyship Provision

A contractual arrangement where a third party (surety) agrees to take responsibility for the debtor's obligations if the debtor fails to fulfill them.

Suretyship Provision

A contractual agreement in which a party assumes responsibility for the debt obligation of a borrower if that borrower defaults.