Both the Current Ratio and the Acid-Test Ratio Are Liquidity

question 83

True/False

Both the current ratio and the acid-test ratio are liquidity ratios.

---

Definitions:

Pay

Compensation received by an employee from an employer in exchange for performing a job.

Thirty Year Mortgage

A long-term home loan typically repaid over 30 years through fixed monthly payments, often with a fixed interest rate.

Monthly Payment

The amount paid each month on a loan, mortgage, or other debt obligation.

APR

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, accounting for fees and compound interest.