Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Get quick and reliable solutions to your questions from a community of experienced experts on our platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

The _______ ratio takes the sum of cash, short-term investments, and current receivables and divides the total by current liabilities. it helps determine immediate short-term debt-paying ability.

Sagot :

tutorconsortium344

The acid-test ratio divides the total by current liabilities after adding up cash, short-term investments, and current receivables. It aids in determining a person's capacity for quick-term debt repayment.

The acid test ratio is what?

The acid test, also known as the quick ratio, compares a company's most short-term assets to its most short-term liabilities in order to evaluate whether it has enough cash to pay its immediate obligations, such short-term debt.

Current assets that are difficult to dispose quickly, such inventory, are disregarded by the acid-test ratio.

To know more about acid test ratio, click here:-

https://brainly.com/question/17251234

#SPJ4

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.