A Company's Quick Assets Are $147,000 and Its Current Liabilities

question 48

True/False

A company's quick assets are $147,000 and its current liabilities are $143,000.This company's acid-test ratio is 1.03 (rounded to two decimals).

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Definitions:

Straight-Line Depreciation

Straight-Line Depreciation is a method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Taxable Income

Refers to the amount of an individual's or a corporation's income used to determine how much tax is owed to a government in a given tax year.

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Canadian government and for most provinces and territories.

Accumulated Depreciation

The total amount of depreciation that has been recorded against a fixed asset over its useful life, reducing its book value.