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Questions and Answers
Which ratio is also known as the acid test ratio?
Which ratio is also known as the acid test ratio?
- Current Ratio
- Working Capital Ratio
- Liquidity Ratio
- Quick Ratio (correct)
Which ratio compares a company's current assets to its current liabilities?
Which ratio compares a company's current assets to its current liabilities?
- Working Capital Ratio
- Liquidity Ratio
- Current Ratio (correct)
- Quick Ratio
Which assets are included in the quick ratio calculation?
Which assets are included in the quick ratio calculation?
- All current assets
- Fixed assets
- Cash, marketable securities, and receivables (correct)
- Inventory and prepayments
What does the quick ratio exclude from the calculation?
What does the quick ratio exclude from the calculation?
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How is the quick ratio different from the current ratio?
How is the quick ratio different from the current ratio?
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