2A2A THE ACID TEST RATIO SHOWS THE ABILITY OF A COMPANY TO PAY ITS CU...
33.
CSO: 2A2a
LOS: 2A2a
The acid test ratio shows the ability of a company to pay its current liabilities without
having to
a.
reduce its cash balance.
b.
borrow additional funds.
c.
collect its receivables.
d.
liquidate its inventory.