ACCOUNTING PRINCIPLES 122 5/16 >C<
ACCOUNTING PRINCIPLES 122 5/16 >C<
17th Edition
ISBN: 9781323461471
Author: Horngren
Publisher: PEARSON C
Question
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Chapter 17, Problem 4QC
To determine

Acid-test Ratio: It is a ratio used to determine a company’s ability to pay back its current liabilities using only liquid assets that are current assets except for the inventory and prepaid expenses. Also known as quick ratio, it is a part of liquidity ratios, used for the evaluation of a company’s liquidity.

To Identify: The correct statement that describes the acid-test ratio of L Company for 2019.

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Chapter 17 Solutions

ACCOUNTING PRINCIPLES 122 5/16 >C<

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