Use the Following to Calculate the Acid-Test Ratio A) 073
B) 8

question 179

Multiple Choice

Use the following to calculate the acid-test ratio. (Round your answer to two decimal places.) $$\begin{array} { | l | r | } \hline \text { Cash } & \$ 130,000 \\\hline \text { Short-term investments } & 15,000 \\\hline \text { Net current receivables } & 280,000 \\\hline \text { Inventory } & 280,000 \\\hline \text { Total current liabilities } & 790,000 \\\hline\end{array}$$

• A) 0.73
• B) 8.67
• C) 0.89
• D) 0.54

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Definitions:

Fluid Per Day

The recommended quantity of fluid intake for an individual within a 24-hour period to maintain health and proper hydration.

Primary Source

A document, artifact, or other piece of information that was created or exists at the time under study, offering direct evidence about a historical topic.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, which are an important source of energy for the body.

Type 2 Diabetes

A chronic condition that affects the way the body processes blood sugar (glucose), characterized by high blood sugar, insulin resistance, and a relative lack of insulin.