acid test ratio of at least _________ means that current liabilities may be paid without using inventory.
A) 0.25
B) 0.50
C) 0.75
D) 1.00

Question

Quizplus · Accepted Answer

The acid test ratio, also known as the quick ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A ratio of 1.00 or higher indicates that a company can pay off its current liabilities without relying on the sale of inventory.

Acid Test Ratio of at Least _________ Means That Current