Kaplan Has a Current Ratio of 2

question 13

Multiple Choice

Kaplan has a current ratio of 2.5 to 1 and current liabilities of $12 000. If Kaplan has $9000 of inventory what is the quick ratio?

• A) 2.25 to 1
• B) 2.00 to 1
• C) 1.75 to 1
• D) 1.50 to 1

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Definitions:

Per Share

A financial metric that represents some quantity divided by the total number of outstanding shares of a company, often used in financial ratios.

First-day Returns

The percentage change in price of a stock or other security from its offering price on its first day of public trading.

SIPC

SIPC stands for the Securities Investor Protection Corporation, which is a nonprofit organization that insures investors' securities and cash in the event a brokerage firm goes bankrupt or faces financial difficulties.

Brokerage Firm

A company that acts as an intermediary between buyers and sellers of financial securities, providing investment services and advice.