Multiple Choice
Which statement below best describes the quick (acid test) ratio?
A) The acid test ratio considers only the most liquid assets: cash,accounts receivable,and temporary investments.
B) The current ratio includes only the assets most easily converted into cash.
C) The acid test adds merchandise inventory and prepaid expenses in the computation of current assets.
D) None of these answers is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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