Which of the Following Is True Regarding the Relationship Between

question 8

Multiple Choice

Which of the following is true regarding the relationship between the current ratio and the acid-test ratio?

• A)The current ratio will always be equal to or larger than the acid-test ratio for a specific company.
• B)The acid-test ratio will always be equal to or larger than the current ratio for a specific company.
• C)Either the current ratio or the acid-test ratio could be larger for a specific company.
• D)One ratio will always exceed 1.0,while the other will always be less than 1.0.

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