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

Question 2

Question 2

Multiple Choice

The acid-test ratio:


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

Correct Answer:

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