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:

Member Satisfaction

The degree to which members of a group or organization are content with the experiences and outcomes of their participation.

Heterogeneous Team

consists of members with diverse backgrounds, skills, and perspectives, which can enhance creativity, problem-solving, and innovation within the group.

Gratification

A sense of pleasure or satisfaction gained from achieving something or fulfilling a desire.

Performance Results

This pertains to the outcomes or outputs produced from activities or tasks, often measured against pre-determined standards or objectives.