How do you determine the acid-test ratio?

How do you determine the acid-test ratio?



a. The sum of cash and short-term investments divided by short-term debt.
b. Current assets divided by current liabilities.
c. Current assets divided by short-term debt.
d. The sum of cash, short-term investments and net receivables divided by current liabilities.


Answer: The sum of cash, short-term investments and net receivables divided by current liabilities


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