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1. Which of the following is a capital budgeting method used toscreen potential? investments? A. accounting rate of return B. acid test ratio C. return

1. Which of the following is a capital budgeting method used toscreen potential? investments?

A. accounting rate of return

B. acid test ratio

C. return on assets

D. debt-to-equity ratio

2. Cash inflows include future cash revenue generated from aninvestment and any future residual value of the asset but excludeany future savings in ongoing cash operating costs resulting fromthe investment.

True

False

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ANSWER 1 B acid test ratio The acidtest ratio compares a companys quick assets cash and accounts rec... blur-text-image

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