Question

The acid-test (quick) ratio Group of answer choices is used to quickly determine a company's solvency and long-term debt paying ability. relates cash, short-term investments, and net receivables to current liabilities. is calculated by taking one item from the income statement and one item from the balance sheet. is the same as the current ratio except it is rounded to the nearest whole percent.

Answer 1

relates cash, short-term investments, and net receivables to current liabilities

Step-by-step explanation:

The quick ratio is am example of a liquidity ratio. Liquidity ratios measure a company's ability to meet its short term obligations