Explanation:
The quick ratio (also known as the acid-test ratio) is calculated as:
Quick Ratio=Current liabilitiesCash and equivalents+Short-term marketable securities+Receivables
Plugging in the numbers:
Quick Ratio=10,000800+500+2,000=10,0003,300=0.33
- Option A (0.13) is incorrect because it represents the cash ratio, which only includes cash and short-term marketable securities.
- Option C (0.00) is incorrect as it does not align with any standard liquidity ratio calculation.
The correct answer is B (0.33), as it accurately reflects the quick ratio.