For a retailer with inventory to sell, the acid-test ratio will be A)
For a retailer with inventory to sell, the acid-test ratio will be
A) less than the current ratio, thus providing a more stringent measure of liquidity.
B) unimportant because it doesn’t include inventory.
C) greater than the current ratio, thus providing a more stringent measure of liquidity.
D) greater than the current ratio, thus providing a less stringent measure of liquidity.
ANSWER
A
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