Which One of These Ratios Is Commonly Referred to as the Acid-Test

question 35

Multiple Choice

Which one of these ratios is commonly referred to as the acid-test ratio?

• A) Times interest earned ratio
• B) Quick ratio
• C) Cash coverage ratio
• D) Cash ratio

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Definitions:

SWOT Analysis

An instrument for planning strategies that detects the Strengths, Weaknesses, Opportunities, and Threats involved in business competition or the planning of a project.

External Analysis

The process of evaluating an organization's external environment to identify opportunities and threats that could impact its strategy and operations.

Environmental Scanning

The process businesses use to understand the external factors influencing their operation, including technological, regulatory, and competitive elements.

Internal Factors

Elements or conditions within an organization or individual's control that can influence decisions, behaviors, and outcomes, such as policies, resources, and personal abilities.