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The acid-test ratio: Multiple Choice is also called the quick ratio. Measures inventory turnover. Is not used by merchandise companies. Measures profitability is generally greater than the current ratio. A merchandising company: Multiple Choice w 0 Buys products from consumers. 0 Earns profit from fares only. 0 Receives fees only in exchange for services. 0 Earns profit from commissions only Eams net income by buying and selling merchandise A trade discount is: Muluple Choice 2:19:10 A reduction in price below the list price A reduction in price for prompt payment 0 Also called a rebate. A term used by a purchaser to describe a cash discount given to customers for prompt payment. A term used by a seller to describe a cash discount granted to customers for prompt payment. A debit memorandum is: Multiple Choice The source document for the purchase of merchandise inventory Required whenever a journal entry is recorded. Not necessary in a perpetual Inventory system. The document a buyer issues to inform the seller of a debit made to the seller's account in the buyer's records. O Required when a purchase discount is granted