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

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

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Question ajoutée par Alex Al Yazouri , General Manager , Al Mushref Cooperative Society
Date de publication: 2015/04/07
Ahmed Afraz
par Ahmed Afraz , Accountant Cum Business Analyst , Mogadishu Shipping & Cargo LLC

OPTION "B"  ( ACID TEST/QUICK RATIO )

Elke Woofter
par Elke Woofter , Project Assistant , American Technical Associates

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

Utilisateur supprimé
par Utilisateur supprimé

It is called turnover ratio

Utilisateur supprimé
par Utilisateur supprimé

I agree with Mr.Ahmed Afraz

Thanks

Alex Al Yazouri
par Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

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

Bello Abubakar
par Bello Abubakar , Cinema 4D Render/Sketch UP, AutoCAD, ArchiCAD and Revit Specialist , Federal Housing Authority

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
par Vinod Jetley , Assistant General Manager , State Bank of India

 The right answer is "B. Acid test ratio"

Utilisateur supprimé
par Utilisateur supprimé

b. Acid test ratio is the correct answer.

Ahmed Abdi Mahad
par Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

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

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

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

Paolo Borchetta
par Paolo Borchetta , Managing Director , NIMM International Mauritanie Mining

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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