[...] eliminates less liquid assets, such as inventory and pre-paid expenses, from the current ratio.
Answer
Quick Ratio (Acid-Test Ratio)
Question
[...] eliminates less liquid assets, such as inventory and pre-paid expenses, from the current ratio.
Answer
?
Question
[...] eliminates less liquid assets, such as inventory and pre-paid expenses, from the current ratio.
Answer
Quick Ratio (Acid-Test Ratio)
If you want to change selection, open document below and click on "Move attachment"
Subject 5. Uses and Analysis of the Balance Sheet of dollars of current assets available to meet current obligations. It is the best-known liquidity measure. A current ratio of less than 1 indicates the company has negative working capital.
<span>Quick Ratio (Acid-Test Ratio) eliminates less liquid assets, such as inventory and pre-paid expenses, from the current ratio. If inventory is not moving, the quick ratio is a better indicator of cash and near-cash items that will be available to meet current obligations.
&
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.