Given the following information: $\begin{array}{lr}\text{ Inventory }& \$500\\ \text{ Short-term marketable securities }& 100\\ \text{ Cash }& 200\\ \text{ Prepaid insurance }& 300\\ \text{ Accounts receivable }& 400\\ \text{ Currentliabilities }& 400\end{array}$ What is the quick ratio?

A) 0.75 times
B) 1.75 times
C) 2.5 times
D) 3.75 times

Quick Ratio

A liquidity metric that assesses a company's ability to meet its short-term obligations with its most liquid assets.

Short-Term Marketable Securities

Financial instruments that can easily be converted into cash within a short period, typically less than one year.