The Acid-Test Ratio Measures

question 17

Multiple Choice

The acid-test ratio measures:

• A)how many days it takes,on average,to sell the inventory.
• B)how well a company can pay its current liabilities with its most liquid current assets.
• C)the number of times per year a company sells goods and collects receivables.
• D)how many days it takes,on average,to collect receivables.

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Definitions:

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The bodies of deceased individuals.

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A psychological condition wherein individuals derive sexual pleasure and satisfaction from experiencing pain or humiliation.

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The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a diagnostic tool used by healthcare professionals in the United States.