Which of the Following Is the Formula to Compute the Acid-Test

question 116

Multiple Choice

Which of the following is the formula to compute the acid-test ratio?

• A)(Cash + short-term investments + net current receivables)/current assets
• B)Current liabilities/current assets
• C)(Cash + short-term investments + net current receivables)/current liabilities
• D)Currents assets/current liabilities

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