menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Accounting for Non Specialists
  4. Exam
    Exam 8: Analysis and Interpretation of Financial Statements
  5. Question
    What Does the Acid Test Ratio Eliminate from Its Calculation
Solved

What Does the Acid Test Ratio Eliminate from Its Calculation

Question 43

Question 43

Multiple Choice

What does the acid test ratio eliminate from its calculation, because it is considered the least liquid of the current assets?


A) bank bills
B) accounts receivable
C) government securities
D) inventory

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q38: Which of these is not a limitation

Q39: If earnings per share is 85c, dividend

Q40: A company with a higher level of

Q41: Place the key steps in financial ratio

Q42: Because a company's inventory is less liquid

Q44: If gross profit is $500,000, interest expense

Q45: Why is interest added back to profit

Q46: Which ratios are specifically concerned with assessing

Q47: Blue Company reported: <span class="ql-formula"

Q48: Which of these ratios is not directly

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines