Improving the Acid Test Ratio via Quick Assets and Liabilities Steps:

• Acid test (quick) ratio = (cash + receivables + short-term investments) / current liabilities; improvements raise numerator or lower denominator short-term.
• Action 2 (speed up receivables collection) converts receivables to cash, increasing numerator without raising liabilities.
• Action 3 (refinance short-term debt with long-term debt) reduces current liabilities, decreasing denominator.
• Actions 1 (e.g., buy inventory on credit) and 4 (e.g., delay payables) either worsen ratio or have no positive effect on quick assets/liabilities.

Why B is correct:

• Actions 2 and 3 directly enhance the ratio by boosting quick assets (action 2) and shrinking current liabilities (action 3), per the formula.

Why the others are wrong:

• A includes actions 1 and 4, which fail to raise quick assets or may increase liabilities.
• C omits action 2, ignoring a key way to increase the numerator.
• D relies only on action 4, which typically raises liabilities and harms the ratio.

Final answer: B