The Acid-Test Ratio

question 54

Multiple Choice

The acid-test ratio:

• A)Is also called the quick ratio.
• B)Measures profitability.
• C)Measures inventory turnover.
• D)Is generally greater than the current ratio.
• E)Is not used by merchandise companies.

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Definitions:

Guarantees

Promises or assurances, usually in writing, that certain conditions will be fulfilled, often relating to the quality or durability of a product or service.

Parental Responsibility

The legal term for the duties, powers, responsibilities, and authority that most parents have in relation to their children, covering their care, property, and education.

Negligent

An individual or entity's failure to take reasonable care, resulting in harm or damage to others.

Mortgage Agreement

is a legal contract between a borrower and lender that outlines the terms and conditions of a loan used to purchase property, with the property acting as security for the loan.