Practice: The following table contains selected financial information for Tougher Question, Inc.

Calculate the quick ratio for TQ, Inc.

Subjects

All Chapters | |||||
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Ch. 1 - Introduction to Accounting | 1hr & 21mins | 0% complete | |||

Ch. 2 - Transaction Analysis | 1hr & 14mins | 0% complete | |||

Ch. 3 - Accrual Accounting Concepts | 2hrs & 38mins | 0% complete | |||

Ch. 4 - Merchandising Operations | 2hrs & 31mins | 0% complete | |||

Ch. 5 - Inventory | 1hr & 55mins | 0% complete | |||

Ch. 6 - Internal Controls and Reporting Cash | 1hr & 16mins | 0% complete | |||

Ch. 7 - Receivables and Investments | 3hrs & 17mins | 0% complete | |||

Ch. 8 - Long Lived Assets | 5hrs & 6mins | 0% complete | |||

Ch. 9 - Current Liabilities | 2hrs & 19mins | 0% complete | |||

Ch. 10 - Time Value of Money | 1hr & 27mins | 0% complete | |||

Ch. 11 - Long Term Liabilities | 2hrs & 45mins | 0% complete | |||

Ch. 12 - Stockholders' Equity | 2hrs & 15mins | 0% complete | |||

Ch. 13 - Statement of Cash Flows | 2hrs & 24mins | 0% complete | |||

Ch. 14 - Financial Statement Analysis | 5hrs & 27mins | 0% complete | |||

Ch. 15 - GAAP vs IFRS | 56mins | 0% complete |

Additional Practice |
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Ratios Cumulative Problems |

Practice: The following table contains selected financial information for Tougher Question, Inc.

Calculate the quick ratio for TQ, Inc.

0 of 2 completed

Concept #1: Ratios: Quick (Acid Test) Ratio

Practice #1: Quick (Acid Test) Ratio

The acid-test (quick) ratio
a. is used to quickly determine a company's solvency and long-term debt paying ability.
b. relates cash, short-term investments, and net receivables to current liabilities.
c. is calculated by taking one item from the income statement and one item from the balance sheet.
d. is the same as the current ratio except it is rounded to the nearest whole percent.

What is the acid-test (quick) ratio for this company?
a. 0.67
b. 1.08
c. 1.00
d. 1.42

Which of the following is true about the quick ratio?
a. It is a liquidity ratio.
b. It cannot exceed the current ratio.
c. It is also called the acid-test ratio.
d. It measures the ability of the firm to pay off its short-term obligations without relying on inventory.
e. All of the above answers are correct.

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