Which of the following are excluded from the numerator in the calculation of the acid-test ratio?
A) inventory and accounts receivable
B) prepaid expenses and cash
C) inventory and prepaid expenses
D) inventory and short-term investments
Correct Answer:
Verified
Q90: A decrease in the acid-test ratio from
Q99: The acceptable acid-test ratio varies by industry.
Q107: The quick ratio helps investors measure the
Q113: The days' sales in receivables ratio is
Q115: The current ratio is calculated by taking
Q145: A company with net sales of $500,000,a
Q146: A company with net sales of $850,000,a
Q147: The accountant at Intellectual Property Inc.gathered the
Q149: Cash collected from accounts receivable is shown
Q153: Content Integration Inc.has $25,000 in cash,$40,000 in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents