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

question 28

Multiple Choice

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

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

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Definitions:

Absolute Threshold

The minimum stimulus energy needed to detect a particular stimulus 50 percent of the time.

Different Pitches

Variations in the frequency of sound waves, resulting in different tones or musical notes perceived by the listener.

Sensation

The method through which our sensory receptors and nervous system accept and depict energy from stimuli in our environment.

Perception

The process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events.