A classified balance sheet showed the following amounts: cash $5,000; short-term investments $2,000; equity investment $3,000; accounts receivable $3,000; prepaid expenses $1,000; and goodwill $2,000. If current liabilities were $4,000, what would be the acid-test ratio? 

A. 2.00 

B. 2.50 

C. 2.75 

D. 4.00

Answer rating: 100% (QA)

Answer Current Assets Stock or Inventory Acounts Receivables Prepaid Expe... View the full answer