Which of the Following Statements Is True About the Acid

Which of the following statements is true about the acid test ratio?

A) The acid test ratio's calculation involves deducting current liabilities from a company's most liquid current assets.
B) Current liabilities that are due for payment in less than a year are stated as a percentage of current assets.
C) The acid test ratio is a useful measure of short term liquidity in a business that has slow moving inventory stock.
D) Current liabilities are deducted from current assets net of inventories and prepayments.
E) If calculated correctly, the acid test ratio will always be greater than one.