IIA Exam IIA-CIA-Part3 Topic 5 Question 68 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam

Question #: 68
Topic #: 5

[All IIA-CIA-Part3 Questions]

Which of the following is an indicator of liquidity that is more dependable than working capital?

AAcid-test (quick) ratio

BAverage collection period

CCurrent ratio.

DInventory turnover.

Show Suggested Answer

Suggested Answer: A

by Alishia at Nov 27, 2023, 04:07 AM

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11 days ago

I'm going with the current ratio. It's a classic liquidity indicator that's hard to beat.

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14 days ago

But the acid-test ratio excludes inventory, making it a more accurate measure of liquidity.

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17 days ago

The acid-test ratio seems like the obvious choice here. It's a more direct measure of liquidity than working capital.

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2 days ago

A) Acid-test (quick) ratio

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18 days ago

I disagree, I believe the answer is C) Current ratio.

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26 days ago

I think the answer is A) Acid-test (quick) ratio.

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