Answer (C) is correct . The acid test, or quick, ratio equals quick assets (cash, trading securities, and accounts receivable) divided by current liabilities. Quick assets total $143
Answer (A) is incorrect because The ratio of 0.60 to 1 omits receivables.
Answer (B) is incorrect because The ratio of 0.90 to 1 omits trading securities.
Answer (D) is incorrect because The ratio of 1.86 to 1 includes inventory among quick assets.
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Devlin Company’s acid test ratio at May 31, Year?2, was
