The acid-test (quick) ratio is more stringent than the current ratio because it excludes:Marketable securitiesInventoryAccounts receivableCash
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Solution 1
The acid-test (quick) ratio is more stringent than the current ratio because it excludes Inventory. This ratio only includes cash, marketable securities, and accounts receivable in its calculation because these are the most liquid assets. Inventory is excluded because it may not be quickly converted Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
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Similar Questions
The acid-test (quick) ratio is more stringent than the current ratio because it excludes:Marketable securitiesInventoryAccounts receivableCash
The acid-test ratio is a measure of a company's:a.Liquidityb.Profitabilityc.Solvencyd.Efficiency
Quick ratio 1.5:1, current assets Rs.1 00000 current liabilities Rs. 40000 calculate the value ofstock
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An acid-test ratio between and 1.0 is usually considered satisfactory but could also be a sign of some cash flow problems.