You Have the Following Information About a Company: Quick Ratio

question 68

Multiple Choice

You have the following information about a company: quick ratio = 0.9,inventory = $50,000 and current assets = $200,000.What is the company's current ratio?

• A) 3.60
• B) 1.80
• C) 1.20
• D) 1.28

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Definitions:

After-Tax Profits

The net income a company retains after all taxes have been deducted from total revenue.

Board of Directors

A group of individuals elected by shareholders to oversee and make strategic decisions for a company.

Shareholders

Owners of shares in a corporation, holding a portion of the business's stock, and therefore having rights to dividends and a say in company matters.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities.