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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 %
A potential creditor's judgment about granting credit would be most influenced by the potential customer's?
trend of acid-test ratio over the past three years
Current assets of 300.000 current liabilities of 1000000 and inventory of 150000 Lemming's acid-test ratio is?
My answer is not able to answered using current keyboard function, the eqaution is very long. but the answer is .5.
What is the definition of a liquidity ratio?
Liquidity ratio are designed to test a company's ability to meet its short-term financial obligations. To find the ratio, you take Cash and Cash Equivalent + Marketable Securities + Accounts Receivable divided by Current Liabilities.
Current ratio vs quick ratio?
Quick ratio is a measure of company's ability to meet short term obligation with liquid assets. Quick ratio= (current assets â?? inventories) / current liabilities. While current ratio also called liquidity ratio measures the ability of a company to pay short term obligations. It is calculated as: Current Ratio= Current Assets / Current Liabilities.
Why quick acid ratio is called acid test ratio?
The acid test was a method used by the gold miners to confirm that their nuggets were real gold. Most metal will fail the test, but gold does not dissolve when emerged in acid. This phrase is now used for a company stock.. so a reading on the quick acid test of lest that one indicates a company has failed it or will not have enough cash or quick assets to cover their short term liabilities..
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.
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.
What is the ideal acid test ratio?
some where between 1 to 1.5
What does the acid test ratio not include cash or accounts receivable or supplies or inventory?
inventory
The acid test ratio does not include 1cash 2accts receivable 3supplies 4inventory?
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Another name of germ tube test?
The alternative name for the germ tube test is "Reynold's test."
What is a another name for a test?
Another name for a test could be an examination or an assessment
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
