Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Acid-test ratio
A)Also know as the quick ratio.
B)Current assets divided by current liabilities.
C)Refers to riskiness of a company with regard to the amount of liabilities in its capital structure.
D)Relates to the amount of time before an asset is converted to cash or a liability is paid.
E)If four to one, 80% of assets are debt-financed.

Question

Quizplus · Accepted Answer

The acid-test ratio, also known as the quick ratio, measures a company's ability to pay its short-term liabilities with its quick assets (cash, marketable securities, and accounts receivable).

Listed Below Are Five Terms Followed by a List of Phrases