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

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Definitions:

Cerebrospinal Fluid

The clear, colorless body fluid found in the brain and spinal cord, protecting and nourishing them.

Myelin Sheath

A fatty layer that surrounds the axons of some neurons, providing insulation and increasing the speed of electrical transmission along the nerve.

CNS

Central Nervous System, comprising the brain and spinal cord, responsible for processing information and controlling body functions.

Glial Cell

Non-neuronal cells in the nervous system that provide support, nutrition, and insulation between neurons.