What is the acid-test ratio
A. 3.0
B. 1.5
C.1.0
D.0.5
2007-03-24 02:24:37 · 5 answers · asked by Trust in yourself 1 in Business & Finance ➔ Other - Business & Finance
the answer is B. 1.5, I am an accounting major.
You get it by 300,000-150,000 and divided by 100,000.
The equation is current assets minus inventories divided by current liabilities.
2007-03-24 02:30:10 · answer #1 · answered by Kevin B 5 · 0⤊ 0⤋
The ratio of current assets less inventories to total current liabilities. This ratio is the most stringent measure of how well the company is covering its short-term obligations, since the ratio only considers that part of current assets which can be turned into cash immediately (thus the exclusion of inventories). The ratio tells creditors how much of the company's short term debt can be met by selling all the company's liquid assets at very short notice. also called acid-test ratio.
I'm pretty sure your answer is A
2007-03-24 02:36:08 · answer #2 · answered by Michael z 1 · 0⤊ 0⤋
is will be 1.5 provided the remaining current assets consists of quick assets like cash in hand,debtors,bills receivabe etc
2007-03-24 02:32:55 · answer #3 · answered by bharadwaja g 1 · 0⤊ 0⤋
B. 1.5
2007-03-26 18:44:13 · answer #4 · answered by pawan k 1 · 0⤊ 0⤋
YOU TELL US AND WE'LL TELL YOU IF YOU'RE RIGHT.
2007-03-24 02:29:25 · answer #5 · answered by stonerosedesigndotcom 3 · 0⤊ 0⤋