The Acid-Test Ratio Is

question 67

Multiple Choice

The acid-test ratio is

• A)Current assets divided by current liabilities.
• B)Cash and short-term investments divided by current liabilities.
• C)Cash,short-term investments,and accounts receivable divided by current liabilities.
• D)Cash,short-term investments,accounts receivable,and inventory divided by current liabilities.

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Definitions:

Fiber

General term for indigestible plant material, typically complex carbohydrates such as cellulose.

Beeswax

A natural wax produced by honey bees of the genus Apis, used in cosmetics, candles, and as a food additive.

Consumptive Use

Refers to the use of water in a manner that reduces the supply from the source, commonly seen in agricultural, industrial, or domestic usage where the water is not returned to its source.

Ethical Principles

Fundamental guidelines that influence decision-making processes and actions, emphasizing morality and integrity.