Asked by
Karina Velazquezamaya
on Oct 28, 2024
Verified
Refer to Exhibit 6-2.Green's acid-test ratio at December 31, 2010, was
A) 3.67 times
B) 2.33 times
C) 1.33 times
D) 0.43 times
Acid-Test Ratio
A financial metric that measures a company's ability to pay off its current liabilities with its quick assets, such as cash, accounts receivable, and short-term investments.
Quick Assets
Quick Assets are those assets that can be quickly converted into cash, typically including cash, marketable securities, and receivables.
- Execute and clarify the implications of financial ratios like price/earnings ratio, dividend yield, profit margin, return on total assets, current ratio, inventory turnover, and debt ratio.
Verified Answer
NR
Learning Objectives
- Execute and clarify the implications of financial ratios like price/earnings ratio, dividend yield, profit margin, return on total assets, current ratio, inventory turnover, and debt ratio.