Question: The acid - test ratio is calculated as: A . ( cash + short - term investments + net current receivables ) (

The acid-test ratio is calculated as:
A.(cash + short-term investments + net current receivables)\(\div \)(total current liabilities).
B.(total current assets)\(\div \)(total current liabilities).
C.(total current liabilities)\(\div \)(total current assets).
D.(cash + short-term investments + net current receivables)\(\div \)(total current assets).
The acid - test ratio is calculated as: A . (

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

please show the details! - Large Limb Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2018. To...

Q:

15 What is the acid - test ratio for a merchant with the following account balances? (Round your answer to two decimal places.) Cash Short - term investments Net current receivables Merchandise...

Q:

that best completes the statement or answers the question. 1) Regarding the gross method of handling credit and debit card transactions, which of the following 1) A) The journal entry on the date of...

Q:

2: Formulas Ref . Formula |2. 1 365 days / Inventory turnover 16. 1 Annual dividend per share . Earnings per share* |C. ) Annual dividend per share , Market price per share i'd . ) | Cash + Short -...

Q:

Kindly, correct me if I am wrong. Income statement (represents profitability in period of time) Sales (Revenue) Total sales Cost of goods sold (COGS) Gross profit SALES - COGS Depreciation...

Q:

please use these ratios. the last person did it wrong of $107.000 2. De Rich count 55.00 P17-27A Usingtos to evaluate #stock investmen Com e financial statement data of Sanfield, Inc. folie Learning...

Q:

Project scope Research the company you are Access the SEC Edgar site to pull up the most recent 1 0 - kSince most companies have a 1 2 / 3 1 / year end - you should have many of these available FOCUS...

Q:

1- A company has net credit sales of $1,400,000, beginning net accounts receivable of $300,000, and ending net accounts receivable of $200,000. What is the days' sales in accounts receivable? (Use...

Q:

The formula to compute the acid - test ratio is A . ( cash + short - term investments + net current receivables

Q:

Homework: Chapter 17 - Homework Question 8, E17-19 (simil. HW Score: 22.4%, 2.24 of 10 points Save Fowler Part 1 of 11 Score: 0 of 1 Big Bold Photos Shop has asked you to dntermine whether the...

Q:

The following income statement and balance sheets for The Sports Shack are provided. Required: Assuming that all sales were on account, calculate the following risk ratios for 2015. 1. Receivables...

Q:

Given the following sample of five observations, develop a scatter diagram, using x as the independent variable and y as the dependent variable, and compute the correlation coefficient. Does the...

Q:

uickBooks Online Certification Level 1: Expenses and vendors exam Question 4 When might a client want to manually record an expense, rather than categorizing it when it comes in through the bank...

Q:

Describe how total variable costs and unit variable costs behave with changes in the level of activity. If fixed costs increase, what would be the impact on the contribution margin and income from...