Each of the Following Is Included in Computing the Acid-Test

question 27

Multiple Choice

Each of the following is included in computing the acid-test ratio except

• A) cash.
• B) inventory.
• C) receivables.
• D) short-term investments.

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Definitions:

Chinese Currency

The official currency of China, known as the Renminbi (RMB) or commonly referred to as the Yuan (CNY).

Scrap Metal

Discarded metal suitable for reprocessing or recycling.

Pharmaceutical

Pertaining to the research, development, and manufacture of drugs and medications.

Stock

A claim to partial ownership in a firm.