Multiple Choice
An acid test (quick) ratio of 0.75 to 1 would indicate:
A) a ratio that would not allow a company to pay off all current liabilities with quick assets.
B) for every $1 of short-term debt there is $0.75 of quick assets to meet short-term obligations.
C) for every $1 of current assets there is $0.75 of short-term debt.
D) Both A and B are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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