The Acid-Test Ratio Is a More Accurate Measure of a Company's

question 219

True/False

The acid-test ratio is a more accurate measure of a company's liquidity than the current ratio.

---

Definitions:

Operational Decisions

Decisions regarding the day-to-day activities and management of an organization, focusing on efficiency and effectiveness of operations.

Supply Chain Operation

The oversight and management of all activities involved in producing and delivering a product or service, from sourcing raw materials to delivering the product to the end user.

Uncertainty Reduction

The process of decreasing the amount of uncertainty and variability in supply chain management through better planning, forecasting, and communication.

Optimize Performance

The process of making something as effective or functional as possible, often through careful adjustments or improvements.