Liquidity Problems Are Likely to Exist When a Company's Acid-Test

question 129

Multiple Choice

Liquidity problems are likely to exist when a company's acid-test ratio:

• A) Is less than the current ratio.
• B) Is 1 to 1.
• C) Is higher than 1 to 1.
• D) Is substantially lower than 1 to 1.
• E) Is higher than the current ratio.