The Acid-Test (Quick) Ratio

question 220

Multiple Choice

The acid-test (quick) ratio

• A) is used to quickly determine a company's solvency and long-term debt paying ability.
• B) relates cash, short-term investments, and net receivables to current liabilities.
• C) is calculated by taking one item from the income statement and one item from the statement of financial position.
• D) is the same as the current ratio except it is rounded to the nearest whole percent.

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Definitions:

Urinary Incontinence

The loss of bladder control, leading to the accidental leakage of urine.

Urinary Retention

A medical condition characterized by the inability to completely or partially empty the bladder.

Hesitancy

The delay and difficulty in initiating urination, often with a decreased strength and calibre of the urinary stream.

White Blood Cells

Cells of the immune system that are involved in protecting the body against both infectious disease and foreign invaders.