The Acid-Test Ratio

question 42

Multiple Choice

The acid-test ratio

• A) is a quick calculation of an approximation of the current ratio.
• B) does not include all current liabilities in the calculation.
• C) does not include inventory as part of the numerator.
• D) does include prepaid expenses as part of the numerator.

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Definitions:

Per Capita Consumption

The average amount of a commodity used by each person within a population.

Optimistic Bias

The belief that other people, but not oneself, will develop a disease, have an accident, or experience other negative events.

Weight Control

Management of weight through a balance of diet and physical activity to maintain a healthy body mass index (BMI).

Stice and Colleagues

Researchers known for their contributions to a specific field, though the term requires more context to identify the specific area of expertise or study.