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

question 225

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:

Insurance Company

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments.

Socialized Industry

An industry that is owned and operated by the government, aiming to provide goods or services for the benefit of the public rather than for profit.

Healthcare Industry

The sector that provides medical services, manufactures medical equipment, and develops pharmaceuticals among other health-related activities.

High-Income Countries

Nations with a high gross national income per capita, indicating a generally high standard of living and economic productivity.