When Calculating the Quick (Acid Test) Ratio, Which of the Following

question 20

Multiple Choice

When calculating the quick (acid test) ratio, which of the following is normally deducted from current assets?

• A) Current liabilities
• B) Cash and prepayments
• C) Inventory and prepaid expenses
• D) Inventory and accounts receivable

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Definitions:

Age

A measurement of the length of time that a person or object has existed since birth or creation, respectively.

Uncannily Familiar

Describing an eerie sense of familiarity with something new or unfamiliar, as if it has been experienced before.

Circadian Rhythms

Biological processes that occur on a roughly 24-hour cycle, influencing sleep-wake patterns, hormone release, and other bodily functions.

Morning People

individuals who have a natural preference for waking up early and are more alert and effective in the morning hours.