The acid-test ratio is: A) current assets divided by current liabilities B) cash and current investments divided by current liabilities C) cash, current investments, accounts receivable, and inventory divided by current liabilities D) cash, current liabilities, and accounts receivable divided by current liabilities

The acid-test ratio is: A) current assets divided by current liabilities B) cash and current investments divided by current liabilities C) cash, current investments, accounts receivable, and inventory divided by current liabilities D) cash, current liabilities, and accounts receivable divided by current liabilities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Current assets in order of liquidity are cash, marketable securities, inventory, and accounts receivable. A) True B) False k
Which of the following is an idicator of financial risk ? a) Net Sales / Total Assets b) Total Liabilities / Equity c) Return on Assets d) Return on Equity
How do I find what the net increase or decrease is in cash on a Statement of Cash Flow?
The best approach to measuring liquidity takes into account changes over time in both liquidity needsand sources. A financial ratio that does this consists of _________ in period t over _________ in periodt.A. liquid assets and liabilities; estimated liquidity needsB. liquid assets; estimated liabilitiesC. estimated reserve needs; liquid assets and liabilitiesD. liabilities; estimated liquid assets
Specify every aspect of the link between the income statement, the balance sheet, and the cash flow statement.
Which of the following calculations of net income is correct? Select one: Cash receipts minus cash payments Assets minus liabilities Revenues minus cost of goods sold Revenues and gains minus expenses and losses
The balance sheet account that is usually reported at its fair market value is: a. Short-term marketable securities b. Accounts receivable c. Current liabilities d. Inventory
The following are all output reports of the financial reporting system, EXCEPT a. variance analysis report. b. statement of cash flows. c. tax return. d. comparative balance sheet.
B4.
Name the assumption requires that financial statement elements be measured in nominal units of money. Describe about the assumption in detail.
How to compute the ratio of liabilities to owner's equity
describe how the cash fl ow statement is linked to the income statement and the balance sheet