Which of the Following Describes the Key Significance of the Acid-Test

question 40

Multiple Choice

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

• A)It measures a company's ability to pay its current liabilities if they are due immediately.
• B)It measures the ability of the company to earn profits out of the sales made by it.
• C)It reflects how much long-term debt a company has.
• D)It indicates how much cash could be realized by selling the inventory.

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Definitions:

Boredom

A state of feeling disinterested, unengaged, or restless due to a lack of stimulation or challenge.

Intrinsic Motivation

The internal desire to perform a task for its own sake, driven by personal satisfaction or interest rather than external rewards.

Personal Growth

The process of developing self-awareness, improving personal skills, and increasing the capacity for fulfillment and happiness through experiences and challenges.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise.