The ________ Ratio Helps Determine the Ability of a Firm

question 39

Multiple Choice

The ________ ratio helps determine the ability of a firm to repay its short-term debts even if it has difficulty selling its inventory.

• A) acid-test
• B) cash flow
• C) diluted current asset
• D) required reserve

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Definitions:

Invitation

An offer that suggests or requests someone's presence or participation, typically in an event or activity.

Offer

An expression of willingness to enter into a contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.

Negotiate

The process of discussing and reaching a mutual agreement between parties with different interests.

Revoke

To formally withdraw, cancel, or annul a right, privilege, or decision.