Which of the Following Is Included in the Denominator of the Acid-Test

question 75

Multiple Choice

Which of the following is included in the denominator of the acid-test ratio?

• A)Total current liabilities less accounts payable
• B)Total liabilities
• C)Total current liabilities
• D)Total current assets

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Definitions:

Rational Expectationists

Economists who argue that individuals make decisions based on their rational outlook, available information, and past experiences.

International Capital Flows

The movement of money for the purpose of investment, trade, or business production across international borders.

Central Bank

A bank whose chief function is the control of the nation’s money supply.

Marc Levinson

An economist, historian, and author known for his work on globalization, economics, and the history of business and technology.