The Quick Acid Test Ratio Contains All of the Following

question 68

Multiple Choice

The quick acid test ratio contains all of the following except:

• A) cash
• B) accounts receivable
• C) marketable securities
• D) prepaid assets

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Definitions:

Operating Segments

Aspects of a business for which individual financial details are accessible and are consistently reviewed by the principal operating decision maker for the purposes of resource distribution and performance assessment.

Revenue Test

An assessment used in various contexts to determine if a certain level of revenue has been achieved or to evaluate the revenue-generating capability of a business.

Operating Segments

Components of a business for which separate financial information is available and evaluated regularly by the company's decision makers.