Asked by
Amaru Shakur
on Oct 22, 2024
Verified
Acid Test = ___.
A) Net Income ÷ Total Assets
B) Net Income ÷ Owner's Equity
C) Sales - Expenses
D) Total Debts ÷ Total Assets
E) Current Assets - Inventories ÷ Current Liabilities
Acid Test
A rigorous and conclusive test to prove the effectiveness or value of something.
Net Income
The total profit of a company after all expenses and taxes have been deducted from total revenue.
Total Debts
The sum of all financial obligations owed by an individual or organization, including both short-term and long-term liabilities.
- Attain the ability to comprehend and calculate key financial ratios to measure liquidity, profitability, and operational efficiency.
Verified Answer
TB
Learning Objectives
- Attain the ability to comprehend and calculate key financial ratios to measure liquidity, profitability, and operational efficiency.