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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 ... Voir Plus
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 ... Voir Plus
Thanks for invitation :- Acid test ratio is much more conservative. If all sales revenue is disappeared could business meet current obligations with readily convertible ... Voir Plus
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 ... Voir Plus
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