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Homework answers / question archive / Martin, a Certified Fraud Examiner, is examining the quick ratio of the ABC Company

Martin, a Certified Fraud Examiner, is examining the quick ratio of the ABC Company

Accounting

Martin, a Certified Fraud Examiner, is examining the quick ratio of the ABC Company. He notes that ABC has cash of $500,000, marketable securities of $1 million, receivables of $3 million, and inventory of $7 million. ABC's current liabilities are $2.25 million. What is ABC's quick ratio? Select one:

a. 2:1

b. None of the choices

C. 5:1

D. 1.1

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