If a Company Has an Acid-Test Ratio Significantly Higher Than

question 130

True/False

If a company has an acid-test ratio significantly higher than the current ratio, it means that the company has a significant amount of inventory.

---

Definitions:

Lymphoid Organ

An organ in the lymphatic system, such as the spleen or thymus, involved in the production, storage, or processing of immune cells.

Atrophies

The process of tissue degradation or reduction in size due to disease, injury or lack of use, affecting its functionality.

Axillary Region

The area of the body under the joint where the arm connects to the shoulder.

Inguinal Region

The area of the lower abdomen just above the leg crease, near the groin.