Liquidity problems are likely to exist for a company when its acid-test ratio:
A) Is both less than the industry average and lower than 1 to 1.
B) Is higher than 1 to 1.
C) Is less than the industry average.
D) Is 1 to 1.
E) Is lower than 1 to 1.

Question

Quizplus · Accepted Answer

The Answer of Liquidity problems are likely to exist for a company when its acid-test ratio:
A) Is both less than the industry average and lower than 1 to 1.
B) Is higher than 1 to 1.
C) Is less than the industry average.
D) Is 1 to 1.
E) Is lower than 1 to 1.

Liquidity Problems Are Likely to Exist for a Company When