Based on the Following Data,what Is the Acid-Test Ratio,rounded to One

question 54

Multiple Choice

Based on the following data,what is the acid-test ratio,rounded to one decimal point?

• A)3.4
• B)3.0
• C)2.2
• D)1.8

Analyze the trade-offs between short-term and long-term financing decisions.

Understand the terms and conditions of different types of short-term credit agreements.

Recognize the advantages and disadvantages of various short-term funding options.

Learn the role and significance of trade credit in working capital management.

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Definitions:

Cohesion

The attraction between molecules of the same substance, which helps to hold the substance together.

Solvency

The ability of an entity, whether an individual, company, or country, to meet its long-term financial commitments and debts.

Subatomic Particles

Particles that are smaller than atoms, including protons, neutrons, and electrons, which make up the atom's nucleus and electron cloud.

Electrons

Electrons are negatively charged subatomic particles that orbit the nucleus of an atom, playing a critical role in chemical reactions and electricity.