A Firm's Acid-Test Ratio Can Never Be Higher Than Its

question 36

True/False

A firm's acid-test ratio can never be higher than its current ratio.

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Definitions:

Immediate Goals

Short-term targets or objectives that a person aims to achieve in the near future.

360-Degree Feedback

A performance appraisal method that collects feedback on an individual from all directions – supervisors, peers, subordinates, and sometimes, external sources like clients and suppliers.

Severity Errors

A cognitive bias in performance evaluations, where the assessor tends to judge all people either too harshly or too leniently.

Performance Appraisal Scales

Tools or methods used in the systematic evaluation of an employee’s job performance, often involving rating scales to assess various aspects of work behavior.