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Author Question: Which of the following the correct formula for calculating acid test ratio? A) Acid test ratio = ... (Read 84 times)

809779

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on: Jul 6, 2018
Which of the following the correct formula for calculating acid test ratio?
 
  A) Acid test ratio = (Current assets - Inventory) / Current liabilities
  B) Acid test ratio = (Current assets - Interest expense) / Current liabilities
  C) Acid test ratio = (Current assets - Current liabilities) / Current liabilities
  D) Acid test ratio = Current assets / Current liabilities

Question 2

A _________ is a book in which business transactions are recorded.
 a. ledger
   b. balance sheet
   c. journal
   d. trial balance


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b614102004

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Reply #1 on: Jul 6, 2018
Answer to Question 1

A
Explanation: A) Acid test ratio = (Current assets - Inventory) / Current liabilities

Answer to Question 2

c


809779

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Reply 2 on: Jul 6, 2018
Thanks for the timely response, appreciate it

juliaf

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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