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  3. Study Set
    Fundamental Accounting Principles Study Set 1
  4. Exam
    Exam 5: Accounting for Merchandising Operations
  5. Question
    The Acid-Test Ratio
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The Acid-Test Ratio

Question 5

Question 5

Multiple Choice

The acid-test ratio:


A) Measures return on assets.
B) Is also called the quick ratio.
C) Is generally greater than the current ratio.
D) Measures profitability.
E) Measures inventory turnover.

Correct Answer:

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