Ratio obtained by dividing 'quick assets' by current liabilities is called:

Question

A. Turnover ratio B. Acid test ratio C. Solvency ratio D. None of these.

Ahmed Afraz · Answer

OPTION "B" ( ACID TEST/QUICK RATIO )

Elke Woofter · Answer

my answer is also b)............

مستخدم محذوف‎ · Answer

It is called turnover ratio

مستخدم محذوف‎ · Answer

I agree with Mr.Ahmed Afraz

Thanks

Alex Al Yazouri · Answer

B. >>>>>>>>>>>>>>>>>>>>>> Acid test ratio

Bello Abubakar · Answer

The Answer Is B....also known as the quick ratio or the pounce ratio — to test a business’s short-term solvency. The acid-test ratio is a more severe test of a business’s solvency (its capability to pay the liabilities that will come due in the short term) than the current ratio.

Vinod Jetley · Answer

The right answer is "B. Acid test ratio"

مستخدم محذوف‎ · Answer

b. Acid test ratio is the correct answer.

Ahmed Abdi Mahad · Answer

Acid Test ratio = (Current asset - Inventory) / Current liability

Acid test ratio is also called quick ratio. So, Choice B is the asnwer

dominicjoy inubile · Answer

absolutely the correct answer is B.cause is still called quick ratio

Paolo Borchetta · Answer

Acid Test or Quick Ratio.

Normally calculated by considering Cash + other quickly near cash assets but not considering inventories at the nominator. Denominator is the current liabilities.

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Ratio obtained by dividing 'quick assets' by current liabilities is called:

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