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

question 85

Multiple Choice

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

• A) cash including cash equivalents, inventory, short-term investments, net current receivables
• B) accounts receivable and inventory
• C) cash including cash equivalents, short-term investments, net current receivables
• D) total current assets

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Definitions:

Dividend Payout Ratio

The percentage of net income that a company pays out to its shareholders as dividends, indicating how much money a company returns to shareholders versus retaining.

Price-Earnings Ratio

A measure of a company's current share price relative to its per-share earnings.

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's net income that is paid out to its shareholders as dividends.

Year 2

A term that refers to the second year in a specific period, often used in planning, reporting, or comparison contexts.