The Acid-Test Ratio Measures

question 17

Multiple Choice

The acid-test ratio measures:

• A)how many days it takes,on average,to sell the inventory.
• B)how well a company can pay its current liabilities with its most liquid current assets.
• C)the number of times per year a company sells goods and collects receivables.
• D)how many days it takes,on average,to collect receivables.

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Definitions:

Evolutionary Theories

Theories that explain various psychological traits, behaviors, and mental processes as adaptations or functions of natural selection and evolutionary history.

Environmental Stimuli

External factors or conditions that can elicit a response from organisms, ranging from temperature changes to social interactions.

James-Lange Theory

A theory of emotion that suggests emotions occur as a result of physiological reactions to events, rather than being the cause of physiological reactions.

Cannon-Bard Theory

A theory of emotion that proposes that emotional feelings and physiological reactions to stimuli are experienced simultaneously, rather than one causing the other.