Which of the Following the Correct Formula for Calculating Acid

question 18

Multiple Choice

Which of the following the correct formula for calculating acid test ratio?

• A) Acid test ratio = (Current assets - Inventory) / Current liabilities
• B) Acid test ratio = (Current assets - Interest expense) / Current liabilities
• C) Acid test ratio = (Current assets - Current liabilities) / Current liabilities
• D) Acid test ratio = Current assets / Current liabilities

---

Definitions:

Reaction

A conversion process in which initial substances or reactants are turned into a different set of substances, known as products.

Organic Chemistry

A field of chemistry focused on understanding the structure, attributes, and reactions of carbon-containing organic compounds.

Major Product

In a chemical reaction, the major product is the compound that is formed in the greatest quantity relative to other products.

Stepwise Mechanism

A reaction mechanism that occurs through multiple discrete stages, each involving its own transition state and intermediates.