The Numerator of the Acid-Test Ratio Consists of

question 43

Multiple Choice

The numerator of the acid-test ratio consists of

• A)total current assets.
• B)cash and marketable securities.
• C)cash and net receivables.
• D)cash, marketable securities, and net receivables.

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Definitions:

Supply

The sum of a certain item or service that consumers can obtain.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market price.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, resulting in no surplus or shortage.

Supply Increases

A condition in which the quantity of goods and services offered by businesses rises, often leading to lower prices if demand remains constant.