The Acid-Test Ratio Is

question 89

Multiple Choice

The acid-test ratio is

• A)Current assets divided by current liabilities.
• B)Cash and short-term investments divided by current liabilities.
• C)Cash,short-term investments,and accounts receivable divided by current liabilities.

Compare the respiratory organs of different animals.

Understand ventilation and its importance in gas exchange.

Describe the relationship between water temperature and oxygen consumption in aquatic organisms.

Identify the common chamber for air and food passage in humans.

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; the higher the turnover, the better.

Current Ratio

An indicator of a company's ability to meet short-term debt obligations; calculated by dividing current assets by current liabilities.

Fixed Assets

Fixed assets are long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Inventory Turns

A measure of how quickly inventory is sold and replaced over a period, indicating the efficiency of inventory management.