The Acid-Test Ratio Is Used for Which Kind of Evaluation

question 74

Multiple Choice

The acid-test ratio is used for which kind of evaluation?

• A) The ability of a company to pay its current liabilities
• B) The ability of a company to collect its receivables
• C) The overall profitability of a company
• D) Evaluating stock in a company from an investor's perspective

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Definitions:

Actualization

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Status Symbol

An object, behavior, or title that signifies an individual's high social standing, prestige, or wealth to others.

Salary

is a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

ERG Theory

Theory that suggests that people are motivated by three categories of needs arranged in the form of a hierarchy.