Sand Company Has an Acid-Test Ratio of 0

question 228

Multiple Choice

Sand Company has an acid-test ratio of 0.8. Which of the following actions would improve the acid-test ratio?

• A) Collect some accounts receivable.
• B) Acquire some inventory on account.
• C) Sell some equipment for cash.
• D) Use cash to pay off some accounts payable.

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Definitions:

Shipworkers' Trade Union

An organization that represents the interests and rights of workers in the shipping or maritime industry.

Labour Relations Board

A regulatory body that oversees and enforces labor laws related to the rights of employers and employees, including union activities and collective bargaining.

Union Representation

The act of labor unions representing the interests of their members in negotiations with employers.

Organization Drive

A campaign or effort undertaken by a union or group to recruit new members or to form a new union within a workplace.