The quick or acid-test ratio is a more rigorous test for short-term insolvency than the current ratio

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The quick or acid-test ratio is a more rigorous test for short-term insolvency than the current ratio because it eliminates ___________, considered the least liquid current asset and most likely source of losses.

(a) Cash.

(b) Accounts receivable.

(c) Marketable securities.

(d) Inventory.

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Understanding Financial Statements

ISBN: 9781292101552

11th Global Edition

Authors: Lyn Fraser, Aileen M. Ormiston

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Question Posted: Mar 20, 2024 12:00 AM

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The quick or acid-test ratio is a more rigorous test for short-term insolvency than the current ratio

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Understanding Financial Statements

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