Calculate the Quick Ratio from the Following Information of a Manufacturing

question 26

Multiple Choice

Calculate the quick ratio from the following information of a manufacturing firm. Cash in hand = $200,000
Cash at bank = $100,000
Total current assets = $450,000
Accrued expenses = $100,000
Taxes payable = $100,000

• A)3:2
• B)1:2
• C)3:1
• D)4:1
• E)2:2

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Definitions:

Zero Slope

A horizontal line on a graph, indicating that there is no change in the y-value (vertical) regardless of the change in the x-value (horizontal); it represents a constant function.

Positive Slope

Indicates an upward trend on a graph, demonstrating that as one variable increases, the other variable also increases, especially used in the context of supply and demand curves in economics.

Consumption

The use of goods and services by households or individuals for personal needs or wants.

Income

Earnings received by an individual or entity, typically in the form of wages, salaries, or various types of investments.