The Acid Test Ratio Is a Stricter Measure Than the Current

question 191

True/False

The acid test ratio is a stricter measure than the current ratio regarding a company's ability to pay its current obligations as they are due.

---

Definitions:

Negative Relationship

A correlation where an increase in one variable leads to a decrease in another variable.

Vertical Axis

In a graph or chart, the vertical line or axis is typically used to represent the dependent variable or measure.

Horizontal Axis

In graphing, this is the x-axis, typically used to represent the independent variable or categories being compared.

Straight Line

A geometric figure formed by two points and extended infinitely in both directions.