The numerator of the acid-test ratio consists of
A)total current assets.
B)cash and marketable securities.
C)cash and net receivables.
D)cash, marketable securities, and net receivables.

Question

Quizplus · Accepted Answer

The acid-test ratio, also known as the quick ratio, includes cash, marketable securities, and net receivables in its numerator to measure a company's ability to meet its short-term obligations without relying on the sale of inventory.

The Numerator of the Acid-Test Ratio Consists of