If you were given the components of current assets and of current liabilities, what ratio(s) could you compute?
A) Acid test or quick ratio
B) Average collection period
C) Current ratio
D) Both A and C
E) All of the above

Question

Quizplus · Accepted Answer

Both the Acid test or quick ratio (A) and Current ratio (C) can be computed using the components of current assets and current liabilities. Average collection period (B) cannot be computed solely from current assets and current liabilities.

If You Were Given the Components of Current Assets and of Current