Question

The formula for the acid-test ratio is computed as (cash short-term investments current receivables)/__________.

Answer 1

When one wants to find out the acid test ratio, the formula is:

• (Cash + Short term investments + Current receivables) / Current liabilities

What is the acid-test ratio?

It shows how well a company can pay off its current liabilities using only its most liquid short term assets.

It is calculated by deducting stock from the current assets and then dividing that figure by the current liabilities. Or, it can be calculated as:

= (Cash + Short term investments + Current receivables) / Current liabilities

Find out more on the acid test ratio at https://brainly.com/question/18651370.

Answer 2

The answer for the problem is CASH