Which of the Following Describes the Key Significance of the Acid

Multiple Choice

Which of the following describes the key significance of the acid ratio?

A) It reflects how much long-term debt a company has.
B) It measures a company's ability to pay its current liabilities by using its current assets.
C) It indicates how much cash could be realised by selling off all the inventory.
D) It measures the profitability of a company.