The acid-test is calculated as: a. $\frac{\text{Cash + Cash Equivalents + Accounts Receivable }}{\text{Current Liabilities}}$

b.$ \frac{\text{Cash + Cash Equivalents + Inventory + Accounts Receivable}}{\text{Current Liabilities}}$

c.$\frac{\text{Cash + Cash Equivalents + Accounts Receivable}}{\text{Current Assets }} $

d.$\frac{\text{Cash + Cash Equivalents + Inventory + Accounts Receivable}}{\text{Current Assets}}$

Question

The acid-test is calculated as: a.  $\frac{\text{Cash + Cash Equivalents + Accounts Receivable }}{\text{Current Liabilities}}$

b.$ \frac{\text{Cash + Cash Equivalents + Inventory + Accounts Receivable}}{\text{Current Liabilities}}$

c.$\frac{\text{Cash + Cash Equivalents + Accounts Receivable}}{\text{Current Assets }} $

d.$\frac{\text{Cash + Cash Equivalents + Inventory + Accounts Receivable}}{\text{Current Assets}}$

Quizplus · Accepted Answer

The Answer of The acid-test is calculated as: a.  $\frac{\text{Cash + Cash Equivalents + Accounts Receivable }}{\text{Current Liabilities}}$

b.$ \frac{\text{Cash + Cash Equivalents + Inventory + Accounts Receivable}}{\text{Current Liabilities}}$

c.$\frac{\text{Cash + Cash Equivalents + Accounts Receivable}}{\text{Current Assets }} $

d.$\frac{\text{Cash + Cash Equivalents + Inventory + Accounts Receivable}}{\text{Current Assets}}$

The Acid-Test Is Calculated As: A Cash + Cash Equivalents + Accounts Receivable Current Liabilities\frac{\text{Cash + Cash Equivalents + Accounts Receivable }}{\text{Current Liabilities}}Current LiabilitiesCash + Cash Equivalents + Accounts Receivable ​