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Acid Test Ratio:

Which is true for Acid test ratio? a. this ratio is for liquidity measurement for acids and chemicals in chemical industry b. this ratio is for liquidity measurement for chemical industry on the whole c. this ratio does not specifically relate to chemical industry it is a general measurement of liquidity of any firm d. this ratio shows the percentage of acids by volume, required to normalize bases.

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تم إضافة السؤال من قبل Anayatullah Tahir , Finance Manager , Etqan Projects
تاريخ النشر: 2014/03/25
Divyesh Patel
من قبل Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

c. this ratio does not specifically relate to chemical industry it is a general measurement of liquidity of any firm

Mukkaram Siddique
من قبل Mukkaram Siddique , Finance, Management & Stocks , Amazon Foods Saudi Arabia

Option C is for accountants

Remaining all belong to chemistry lab :p

Muhammad Zubair
من قبل Muhammad Zubair , CFO / Chief Accountant , RH Group

Correct answer is C

Umer Aziz
من قبل Umer Aziz , Senior Accountant , TERNA Bahrain Holding - GEK Group (www.terna.gr)

Option C

Subash Thomas
من قبل Subash Thomas , Manager- Internal Audit. , Suhail Bahwan Group Holding LLC

Option - C. Acid test ratio or quick ratio is the ability of a company to meet its immediate liabilities without using the inventories.

Acid test ratio (Quick ratio)=  (cash & bank balance+ receivables+short term investments)/ current liabilities

Mir Mujtaba Ali
من قبل Mir Mujtaba Ali , Internal Audit Manager , Confidential

c <<< C . this ratio does not specifically relate to chemical industry it is a general measurement of liquidity of any firm>>>>

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