The Acid-Test Ratio Is

question 84

Multiple Choice

The acid-test ratio is:

• A)The liquidity ratio divided by the equity ratio.
• B)Current assets minus inventory divided by current liabilities minus accounts payable.
• C)Cash,net receivables,and current investments divided by current liabilities.

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Definitions:

Imports

Goods or services brought into one country from another for sale or use.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between options.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than others.

Trade Deficit

The economic condition that arises when a country imports more goods and services than it exports.