What Does the Acid Test Ratio Eliminate from Its Calculation

question 43

Multiple Choice

What does the acid test ratio eliminate from its calculation, because it is considered the least liquid of the current assets?

• A)bank bills
• B)accounts receivable
• C)government securities
• D)inventory

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Definitions:

Organic Lotions

Skincare products made from organically sourced ingredients, free from synthetic chemicals, and often certified to meet organic standards for purity and sustainability.

Wealthy Residents

Individuals or households that possess a significant amount of financial resources, often measured by high income or substantial assets.

Convenience Store

A retail outlet that sells a limited range of household goods and groceries, often open long hours for the convenience of customers.

Warehouse Club

A membership-based retail store offering a wide variety of merchandise, often in bulk, at discounted prices to its members.