CIMA BA3 · Chapter 13 · Question 2 of 10
A company has current assets of $48,600, of which inventory is $21,600, and current liabilities of $27,000. What is its quick (acid test) ratio?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 1.0:1
Explanation
Quick ratio = (current assets - inventory) / current liabilities = ($48,600 - $21,600) / $27,000 = $27,000 / $27,000 = 1.0:1.
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