The Acid Test Ratio Does Not Include

question 10

Multiple Choice

The acid test ratio does not include:

• A) Cash
• B) Accounts receivable
• C) Supplies
• D) Inventory
• E) None of these

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Definitions:

Equal Payments

Payments that are the same in amount, typically referring to the consistent and periodic payments made over the life of a loan or for a subscription service.

Rate of Interest

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Final Payment

The last payment made to settle a financial obligation, completing the payment schedule.

Interest Annually

The payment received or owed for the use of money calculated over a one-year period.