From the Following Details,calculate the Acid-Test Ratio

question 31

Multiple Choice

From the following details,calculate the acid-test ratio.(Round to two decimal places.)

• A)0.91
• B)0.94
• C)1.06
• D)0.70

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Definitions:

Accounting Standards

Rules and guidelines set by regulatory bodies that dictate how financial transactions and accounting practices should be recorded and reported.

Foreign Subsidiary

A company that is partially or wholly owned and controlled by a parent company but operates in a different country.

Accounting

The systematic recording, reporting, and analysis of financial transactions of a business.