The Acid-Test Ratio Is an Example of Which Type of Ratio

question 29

Multiple Choice

The acid-test ratio is an example of which type of ratio?

• A) solvency ratio
• B) profitability ratio
• C) liquidity ratio
• D) activity ratio

Learn about the reporting requirements for payroll taxes to government agencies.

Know how to compute both regular and overtime earnings for payroll.

Understand how payroll tax deposits are made based on collected taxes.

Understand the concept and characteristics of minority groups.

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Definitions:

Liquidating Dividend

A type of dividend paid by a corporation to its shareholders during its liquidation, distributing the remaining assets among the shareholders.

Sale

The exchange of goods or services for money, constituting a fundamental economic activity.

Excess Cash

Indicates surplus cash that a company holds beyond what is required for its day-to-day operations.