What are Wang's current ratio and acid test ratio? $\begin{array}{ll}
&\text { Current } & \text { Acid Test } \
&\text { Ratio } & \text { Ratio }\\text { A) } & 1.4 & .50 \
\text { B) } & 1.4 & .80 \
\text { C) } & 6.0 & .50 \
\text { D) } & 6.0 & .80
\end{array}$
A)Option A
B)Option B
C)Option C
D)Option D

Question

Quizplus · Accepted Answer

The correct answer is determined by calculating both the current ratio and the acid test ratio. The current ratio is calculated by dividing current assets by current liabilities, and the acid test ratio is calculated by subtracting inventory from current assets and then dividing by current liabilities. Without specific numbers provided in the question, the correct answer cannot be determined based on calculations. However, the selection of option B suggests it was chosen based on information provided elsewhere in the question or from an understanding that the acid test ratio is typically lower than the current ratio because it excludes inventory from the assets.

What Are Wang's Current Ratio and Acid Test Ratio A)Option a B)Option B C)Option C D)Option D

What Are Wang's Current Ratio and Acid Test Ratio A)Option a
B)Option B
C)Option C
D)Option D