Which of the following is true of the acid-test ratio? O A. It measures a company's ability to pay its current liabilities. O B. It measures the ability of the company to earn net income. C. It indicates how much cash could be realized by selling the inventory O D. It measures a company's ability to meet its short-term obligations with cash and cash equivalents. A company can finance its assets by receiving cash or other assets from st O True O False be recarded? O A. July 15 Aunts Raca Smith Dad Debt Expensc July 15 Cash Accounts Hacsivabls G Smth B. July 15 Cash Accounts Recchrabk G Smith OC. July 15 Acunts Racaata Smith Bad Deb: Ravanuc July 15 Cosh 325 Accounts Hacshabl G Smth O D. July 15 Cash ad DebtExpensa peity cash fund was established with a $200 balance It currently has cash of $35 and petty cash tickets as follows Office expense $130 and Entertainment Expense $50. Which of the following would be included in the journal entry to replenish the Petty Cash fund? O A. dobit to Cash Short&Ovar for $20 O B. credit to Cash Short&Over for $20 OC. debit to Cash Short&Ovar for $15 O D. credit to Cash Short&Over for $15 Short Company owns a 2% nvestment in he common stock o Long Company The receipt of a cas han end from Long w have no effect on Shorts otal e uit O True O False If the Fair Value Adjustment - Trading account for trading debt investments has a debit balance, it is O A. added to the Trading Debt Investment account to determine carrying value O B. reported in the other income and expenses section of the income statement C. subtracted from the Trading Debt Investment account to determine carrying value O D. considered to be a contra account