Which of the Following Describes the Key Significance of the Acid

question 54

Multiple Choice

Which of the following describes the key significance of the acid ratio?

• A) It measures a company's ability to pay its current liabilities by using its current assets.
• B) It measures the profitability of a company.
• C) It reflects how much long-term debt a company has.
• D) It indicates how much cash could be realized by selling off all the inventory.

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Definitions:

Amendment 24

A part of the U.S. Constitution that prohibits both Congress and the states from conditioning the right to vote in federal elections on payment of a poll tax or other types of tax.

General Appropriations Act

Legislation that specifies the amount of funds to be used by government agencies and for what purposes, essentially a budget bill.

Sierra Club

An environmental organization founded in the United States in 1892 that advocates for the protection and preservation of the natural environment.

Federal Protection

Refers to the security and safety measures provided by a federal government to preserve national landmarks, citizens' rights, and natural resources.