What ratio(s) customarily include(s) in the numerator cash, marketable securities, and accounts receivable, with the denominator including all current liabilities?
A)current ratio
B)noncurrent ratio
C)acid test ratio
D)quick ratio
E)choices c and d

Question

Quizplus · Accepted Answer

The acid test ratio and the quick ratio both include in the numerator cash, marketable securities, and accounts receivable, and in the denominator all current liabilities. These ratios are designed to measure a company's short-term liquidity and its ability to cover its short-term obligations without needing to sell inventory.

What Ratio(s) Customarily Include(s) in the Numerator Cash, Marketable Securities