The Acid-Test (Quick) Ratio

question 220

Multiple Choice

The acid-test (quick) ratio

• A) is used to quickly determine a company's solvency and long-term debt paying ability.
• B) relates cash, short-term investments, and net receivables to current liabilities.
• C) is calculated by taking one item from the income statement and one item from the statement of financial position.
• D) is the same as the current ratio except it is rounded to the nearest whole percent.

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Definitions:

Genital

Relating to the reproductive organs; also used to describe the phase of psychosexual development in psychoanalytic theory that focuses on the genitals.

Phallic Stage

A phase in Freudian psychosexual development, occurring roughly between the ages of 3 and 6 years, where the libido (sexual energy) is focused on the genitals.

Anal Stage

The second stage in Freud's psychosexual development stages, occurring from about 18 months to three years of age, when the child's focus of pleasure is on eliminating or retaining feces.

Genital Stage

The final stage of psychosexual development proposed by Freud, focusing on mature sexual interests and behaviors.