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:

Language Acquisition

The process by which individuals learn their native language(s), including the comprehension and production of speech.

Biological Explanations

Understandings or interpretations based on biological factors, such as genetics, brain structures, or evolutionary history, to account for certain behaviors or phenomena.

Maturation

The process of becoming mature; the process of developing in physical, sexual, intellectual, or emotional capacity, generally as a result of biological aging and not solely based on learning.

Jargoning

The use of specialized or technical language in a particular field, profession, or group, often making communication difficult for outsiders.