Ask the Community
Ask any professional question and get answers from other specialists.
The acid test ratio is also known as the quick ratio is similar to the current ratio except that Inventory, Supplies, and Prepaid Expenses are excluded. In other words, t ... See More
The Quick Ratio is sometimes called the "acid-test" ratio and is one of the best measures of liquidity. Quick Ratio or Acid Test Ratio = Quick Assets/ Current L ... See More
Thanks for invitation :- Acid test ratio is much more conservative. If all sales revenue is disappeared could business meet current obligations with readily convertible ... See More
This ratio also called quick ratio or liquidity ratio it measures the ability of the company to use its liquid assets which is near to cash that's the reason while c ... See More
the first is the better, as the latter has a debt burden at double of its capital which causes high ris to the business, i.e bankruptcy
by keeping in view liquidity of the firm, company x is in a better position as compared to company y