Multiple Choice
The formula for the acid ratio is
A) Current assets/Current liabilities
B) (Cash + Marketable securities + Accounts receivable) /Current liabilities
C) (Cash + Marketable securities) /((Annual expenses - Depreciation) /365)
D) Accounts receivable/(Operating revenue/365)
E) Current liabilities/((Annual expense - Depreciation) /365)
Correct Answer:
Verified
Correct Answer:
Verified
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