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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 13MCQ

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The current ratio is: Multiple Choice Cash, short-term investments, and accounts receivable divided by current liabilities. Current assets divided by current liabilities. Cash, short-term investments, accounts receivable, and inventory divided by current liabilities. Current liabilities divided by current assets.
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, and accounts receivable divided by current liabilities.d. Cash, current investments, accounts receivable, and inventory divided by current liabilities.
Which of the following is included in the calculation of the quick (acid-test) ratio?a. Inventory and short-term investmentsb. Inventory and prepaid expensesc. Cash and accounts receivabled. Prepaid expenses and cash
Given the information, give the following ratios; a. acid test ratio b. working capital c. Receivable turnover d. average Collection period.
Options I have for denominator are - average accounts receivable, net average total assets cost of goods sold current assets current liabilities interest expense net sales
Define these. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
Question: What is the formula for calculating the current ratio? a. Current Assets / Current Liabilitiesb. Current Liabilities / Current Assetsc. Total Assets / Total Liabilitiesd. Total Liabilities / Total Assets
The debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total assets.c. total assets by long-term liabilities.d. long-term liabilities by total assets.
Expressing accounts receivable as a percentage of total assets is an example ofa. ratio analysis.b. vertical analysis.c. horizontal analysis.d. trend analysis.
Perform the calculation for each ratio, and provide an explanation of the result. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
In analyzing the financial statements which are given can you please compute the following ratios: 1.RECEIVABLE TURNOVER 2.AVERAGE COLLECTION PERIOD