The acid-test is calculated as:

Question

Quizplus · Accepted Answer

The acid-test ratio is a liquidity ratio that measures a company's ability to pay off its liabilities with quick assets. A "good" acid-test ratio is generally considered to be 1 or higher, indicating that a company can cover its current liabilities with its liquid assets in the short term. The given acid-test ratio of 11ea84e3_9028_d8fd_abcc_3158c8bdf5c2_TB3446_00 cannot be evaluated as it is not a valid number. Therefore, none of the choices are suitable.

The Acid-Test Is Calculated As