What does the acid$-$test $($quick$)$ ratio measure?

a$)$ A company's ability to pay off its shortterm liabilities with its most liquid assets

b$)$ A company's ability to pay off its longterm liabilities with its most liquid assets

c$)$ A company's leverage ratio

d$)$ A company's profitability

What is the purpose of the statement of cash flows?

a$)$ To report the financial position of a company at a specific point in time

b$)$ To report the changes in a company's equity over a period of time