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Which of the following statements about the acid-test ratio is TRUE? A. An acid-test ratio of 0.90 to 1.00 is considered good in most industries.

Which of the following statements about the acid-test ratio is TRUE?

A. An acid-test ratio of 0.90 to 1.00 is considered good in most industries.

B. Prepaids are included when computing the acid-test ratio.

C. The lower the acid-test ratio is, the better able a company is to pay its current liabilities.

D. The acid-test ratio measures profitability.

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