Which Statement Below Best Describes the Quick (Acid Test)ratio

question 4

Multiple Choice

Which statement below best describes the quick (acid test) ratio?

• A)The acid test ratio considers only the most liquid assets: cash,accounts receivable,and temporary investments.
• B)The current ratio includes only the assets most easily converted into cash.
• C)The acid test adds merchandise inventory and prepaid expenses in the computation of current assets.
• D)None of these answers is correct.

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Definitions:

Phonemes

are the smallest units of sound in a language that can distinguish one word from another.

Prefixes

Word parts added to the beginning of a word to change its meaning or create a new word.

Universal Sound Units

The basic elements of phonology that are recognized across all human languages.

Morphemes

The smallest grammatical units in a language that carry meaning, which can be words or parts of words, such as prefixes or suffixes.