A Company Has the Following Accounts

question 73

Multiple Choice

A company has the following accounts.What is the acid test ratio?

• A)3.58%
• B)3.17%
• C)1.80%
• D)4.00%
• E)2.68%

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Definitions:

Money

A medium of exchange that facilitates trade, and is widely accepted in payment for goods and services and repayment of debts.

Savings

The portion of income not spent on consumption, often set aside for future use or investment.

Equilibrium

A condition where the supply and demand in the market are in equilibrium, leading to stable prices.

Full Employment

A situation in an economy where all individuals who are willing and able to work at current wage levels are employed, with minimal levels of unemployment.