B. recognized ratably over all four quarters with the first quarter being restated. C. recognized in the second quarter. D. disclosed by note only in the second quarter. How is the average inventory used in the calculation of each of the following? Acid-Test (Quick) Ratio Inventory Turnover Ratio a. Numerator Numerator b. Numerator Denominator c. Not Used Denominator d. Not Used Numerator Which of the following ratios is(are) useful in assessing a company”s ability to meet current maturing or short-term obligations? Acid-Test Ratio Debt to Total Assets Ratio a. No No b. No Yes c. Yes Yes d. Yes No Which of the following ratios should be used in evaluating the effectiveness with which the company uses its assets?
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