The acid-test ratio is a. Current assets divided by current liabilities.b. Cash and current investments divided by current liabilities.c. Cash, current investments, and accounts receivable divided by current liabilities.d. Cash, current investments, accounts receivable, and inventory divided by current liabilities.
The acid-test ratio is a. Current assets divided by current liabilities.b. Cash and current investments divided by current liabilities.c. Cash, current investments, and accounts receivable divided by current liabilities.d. Cash, current investments, accounts receivable, and inventory divided by current liabilities.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 17MCQ
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The acid-test ratio is
a. Current assets divided by current liabilities.
b. Cash and current investments divided by current liabilities.
c. Cash, current investments, and accounts receivable divided by current liabilities.
d. Cash, current investments, accounts receivable, and inventory divided by current liabilities.
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