The Acid-Test Ratio Would Include in the Numerator

question 12

Multiple Choice

The acid-test ratio would include in the numerator:

• A)cash, short-term investments, and prepaid expenses.
• B)inventory, cash, and short-term investments.
• C)cash, short-term investments, and net current receivables.
• D)cash, inventory, and prepaid expenses.

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Definitions:

Square Feet

A measurement of area equal to a square that is one foot on each side, commonly used to measure the size of rooms or buildings.

Allocation Basis

A criterion or standard used in accounting to distribute costs among various departments, projects, or activities based on benefits received or other equitable relationship.