0
Add your answer:
Earn +20 pts
What does the acid test ratio not include cash or accounts receivable or supplies or inventory?
inventory
If a company converts a short-term note payable into a long-term note payable what would this transaction do?
decrease the current ratio and decrease the acid-test ratio
Evaluation of a company's ability to pay current liabilities?
Use the following ratios to evaluate a company's ability to pay current liabilities: Working Capital Ratio Current Ratio Acid-test Ratio
The acid test ratio does not include?
acid test / quick ration = quick assets / quick liablities quick assets = current assets - stock- prepaid expenses quick liablities = current liablities - bank overdraft
Inventory of merchandise is a current asset?
Yes, as inventories could be considered as current assets. But wil calcuating quick ratio or acid test ratio, inventories to be deducted from other current assets.
What is a measure of liquidity?
the two ratios that measure liquidity is acid test and current ratio. the acid test ratio is current assets- stock/ current liabilities the current ratio is current assets/ current liabilities
300000 current assets 100000 current liabilities and inventory of 150000 what is the acid test ratio?
acid test ratio = quick assets / current liabilitiesacid test ratio = 150000 / 100000acid test ratio = 150 %
An example of liquidity ratio is the?
current ratio and acid test ratio are examples of liquidity ratios'. current ratio is current asset's/ current liabilities. acid test ratio is current assets- stock / current liabilities.
Another name for the acid test ratio is?
Other names are the quick ratio ot the liquid ratio
Should an acid-test ratio increase or decrease?
An acid-test ratio should typically increase over time. An increase in the acid-test ratio indicates that a company has more liquid assets relative to current liabilities, which is generally a positive sign of financial health and liquidity.
Why quick acid ratio is called acid test ratio?
The quick acid ratio is called the acid test ratio because it provides a quick assessment of a company's ability to pay its short-term liabilities using its most liquid assets. It is often referred to as the acid test because it is a stringent measure of liquidity that focuses on the most liquid assets that can be converted into cash quickly.
What is the ideal ratio of all accounting ratio?
There is no single ideal ratio.
The acid test ratio does not include 1cash 2accts receivable 3supplies 4inventory?
D
What does the acid test ratio not include cash or accounts receivable or supplies or inventory?
inventory
How do you calculate the transformer turns ratio?
For an ideal transformer, the voltage ratio is the same as its turns ratio.
Common-mode rejection ratio of an ideal amplifier?
The common mode rejection ratio of an ideal amplifier is infinity.
What is ideal quick ratio?
A quick ratio of 1 is regarded as ideal and demonstrates good liquidity within the business
