The Crafter Company Has the Following Assets and Liabilities Determine the Quick Ratio Rounded to One Decimal Point)

question 163

Multiple Choice

The Crafter Company has the following assets and liabilities: $$\begin{array} { | l | c | } \hline \text { ASSETS } & \\\hline \text { Cash } & \$ 28,000 \\\hline \text { Accounts receivable } & 15,000 \\\hline \text { Inventory } & 20,000 \\\hline \text { Equipment } & 50,000 \\\hline & \\\hline \text { LIABILITIES } & \\\hline \text { Current portion of long-term debt } & 10,000 \\\hline \text { Accounts payable } & 2,000 \\\hline \text { Long-term debt } & 25,000 \\\hline\end{array}$$ Determine the quick ratio rounded to one decimal point) .

• A) 5.3
• B) 3.6
• C) 3.3
• D) 2.3

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Definitions:

ADR

Alternative Dispute Resolution, a range of processes that help parties resolve disputes without traditional litigation.

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The process of taking legal action in court to resolve a dispute.

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Describes a legal system or process where two opposing parties present their arguments to an impartial judge or jury.

Settlement Agreement

A legal agreement that resolves a dispute between two parties without the need for a trial.