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nydimaria [60]
3 years ago
11

The acid-test (quick) ratio A. relates cash, short-term investments, and net receivables to current liabilities. B. is calculate

d by taking one item from the income statement and one item from the balance sheet. C. is used to quickly determine a company's solvency and long-term debt paying ability. D. is the same as the current ratio except it is rounded to the nearest whole percent.
Business
1 answer:
Elena-2011 [213]3 years ago
4 0

Answer:

The correct answer is letter "A": relates cash, short-term investments, and net receivables to current liabilities.

Explanation:

The Quick Ratio measures a business's more liquid assets in relation to its short-term obligations. Also called the Acid-Test Ratio, <em>it is calculated by adding the company's cash and equivalents with its short-term investments and its accounts receivables. That result is divided by the firm's current liabilities and the final figure will be the Quick Ratio</em>.

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