Refer to the exhibit.

Refer to the exhibit.

A company has the following current assets and liabilities at its most recent year end:

When measured against standard acceptable levels for liquidity, the company can be said to have:
A . An ideal acid test ratio, but a high current ratio
B . An ideal current ratio, but a low acid test ratio
C . A high current ratio and a low acid test ratio
D . Ideal current and acid test ratios

View Answer

Answer: A