What Is the Acid-Test Ratio for a Merchant with the Following

Multiple Choice

What is the acid-test ratio for a merchant with the following account balances? (Round your answer to two decimal places.) $$\begin{array} { | l | l | } \hline \text { Cash } & \$ 21,000 \\\hline \text { Short-term investments } & 44,000 \\\hline \text { Net current receivables } & 54,000 \\\hline \text { Merchandise inventory } & 21,000 \\\hline \text { Total current liabilities } & 275,000 \\\hline\end{array}$$

A) 0.76
B) 0.43
C) 0.60
D) 0.83