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.