When Is the Acid Test an Especially Important Test for a Company's

Multiple Choice

When is the acid test an especially important test for a company's liquidity?

A) when the economy is slow and inventory is not selling
B) when the economy is robust and inventory is selling fast
C) with companies that exclusively sell services and therefore do not have any inventory
D) with companies that exclusively sell services to the wealthy and therefore are not subject to economic downturns