Which of the following would NOT affect the acid-test ratio?
A) increasing supplies
B) decreasing accounts receivable
C) increasing cash
D) decreasing accounts payable

Question

Quizplus · Accepted Answer

The acid-test ratio is calculated by taking the sum of a company's quick assets (cash, marketable securities, and accounts receivable) and dividing by its current liabilities. Increasing supplies would not affect the acid-test ratio because supplies are not considered quick assets.

Which of the Following Would NOT Affect the Acid-Test Ratio