The acid-test ratio is: A) current assets divided by current liabilities B) cash and current investments divided by current liabilities C) cash, current investments, accounts receivable, and inventory divided by current liabilities D) cash, current liabilities, and accounts receivable divided by current liabilities

The acid-test ratio is: A) current assets divided by current liabilities B) cash and current investments divided by current liabilities C) cash, current investments, accounts receivable, and inventory divided by current liabilities D) cash, current liabilities, and accounts receivable divided by current liabilities

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 17MCQ

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The acid-test ratio is a. Current assets divided by current liabilities.b. Cash and current investments divided by current liabilities.c. Cash, current investments, and accounts receivable divided by current liabilities.d. Cash, current investments, accounts receivable, and inventory divided by current liabilities.
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