The ratio that indicates whether a company could pay all its current liabilities if they were to become due immediately is known as the acid-test ratio.

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The statement is true. The acid-test ratio, also known as the quick ratio, is a measure of a company's liquidity that compares its quick assets (cash, marketable securities, and accounts receivable) to its current liabilities. It indicates whether a company has enough liquid assets to cover its short-term financial obligations if they were to become due immediately. An acid-test ratio of 1 or higher is generally considered to be good.

The Ratio That Indicates Whether a Company Could Pay All