Quick assets divided by the current liabilities is the:?

NetherCraft 0

Quick assets divided by the current liabilities is the:

a) acid-test ratio

b) current ratio

c) working capitol ratio

d) current liability turnover ratio

e) quick asset turnover ratio

2 Answers

  • acid test ratio.

  • https://shorturl.im/GE7Ut

    If you mean current assets divided by current liabilities this is called the current ratio. If you go a bit further and deduct stock and prepayments from the assets and deduct the bank overdraft from the liabilities you get the Quick ratio or acid test. This tells you the ability (or not) of the company being able to pay its current liabilities with its cash or near cash assets. The ratio should be more than 1:1

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