What Is the Acid-Test Ratio for a Merchant with the Following

question 126

Multiple Choice

What is the acid-test ratio for a merchant with the following account balances? (Round your answer to two decimal places. ) $$\begin{array} { | l | r | } \hline \text { Cash } & \$ 22,000 \\\hline \text { Short-term investments } & 41,000 \\\hline \text { Net current receivables } & 50,000 \\\hline \text { Merchandise inventory } & 93,000 \\\hline \text { Total current liabilities } & 275,000 \\\hline\end{array}$$

• A)0.75
• B)0.41
• C)0.60
• D)0.81

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