A Potential Creditor's Judgment About Granting Credit Would Be Most

question 6

Multiple Choice

A potential creditor's judgment about granting credit would be most influenced by the potential customer's:

• A) current ratio at the end of the prior fiscal year.
• B) most recent acid-test ratio.
• C) trend of acid-test ratio over the past three years.
• D)practice with respect to taking cash discounts offered by current suppliers.

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Definitions:

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