Use the following information and calculate the quick ratio for Davis Company and for Bender Inc.
a Calculate the quick ratio for each company.
b Comment on which one is more able to meet current liabilities.
Definitions:
Sales Tax Rate
The percentage of sales price that businesses must collect from customers and remit to governmental agencies as sales tax.
QuickBooks Lists
Features within QuickBooks software that organize data into manageable categories like vendors, customers, and inventory items for easy access and management.
Opening Balance
The opening balance is the amount of funds in an account at the start of a new accounting period, carried over from the end of the previous period.
New Account
The initial setup or registration of an account in a financial system or online service.
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