How do you determine the acid-test ratio? The sum of cash and short-term investments divided by short-term debt. Current assets divided by current liabilities. Current assets divided by short-term debt. The sum of cash, short-term investments and net receivables divided by current liabilities
Added by Mark S.
Step 1
** Show more…
Show all steps
Your feedback will help us improve your experience
Azat Nurmukhametov and 91 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Given the following information: Cash $29,000, Accounts Receivable $114,000, Inventory $113,000, Prepaid Expenses $6,000, Total capital assets $525,000, Total current liabilities $142,000, Long-term debt $289,000, Total shareholders' equity $356,000, Net sales $858,000, Cost of goods sold $513,000, Gross Margin $345,000, Net income $48,000. The acid test ratio is: a. 1.01 b. 1.85 c. 75% d. 55%
Brooke B.
The quick ratio, sometimes called the "acid test," is a more stringent measure of liquidity than the current ratio.
Kevra B.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD