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The same ratio worked out after leaving inventory out is called the:
AAcid-wash ratio
BAcid-drop ratio
CAcid-test ratio
DAcid-base ratio
Answer & Solution
Correct answer: C. Acid-test ratio
1. Inventory is the least liquid current asset.
2. The test is stricter without it.
3. It is the acid-test ratio.
_Source: OpenStax Introduction to Business, Chapter 14, Using Financial Information and Accounting._
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