KLM Corporation's quick assets are $5,888,000,its current assets are $11,700,000 and its current liabilities are $8,000,000.Its acid-test ratio equals:

A) 0.50.
B) 0.68.
C) 0.74.
D) 1.50.
E) 2.20.

Acid-test Ratio

A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.

Quick Assets

Assets that can be quickly converted into cash without a significant loss in value, including cash, marketable securities, and accounts receivable.

Current Liabilities

Obligations or debts that a company must pay within one year or within its operating cycle if longer.