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.

---

Definitions:

Inclusive Fitness

A concept in evolutionary biology that considers an individual's success in passing genes to the next generation, including through relatives.

Reproductive Success

The success an organism achieves in passing its genes to the next generation, often measured by the number of offspring an organism produces that survive to reproduce.

Kin Selection

Indirect selection; adaptation to the environment due to the reproductive success of an individual’s relatives.

Altruism

The behavior of an individual that benefits another at its own expense, observed in various species as a part of social interaction.