some where between 1 to 1.5
inventory
decrease the current ratio and decrease the acid-test ratio
Use the following ratios to evaluate a company's ability to pay current liabilities: Working Capital Ratio Current Ratio Acid-test Ratio
acid test / quick ration = quick assets / quick liablities quick assets = current assets - stock- prepaid expenses quick liablities = current liablities - bank overdraft
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.
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
acid test ratio = quick assets / current liabilitiesacid test ratio = 150000 / 100000acid test ratio = 150 %
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.
Other names are the quick ratio ot the liquid ratio
ok
carl is a semi-kin
Acid-test or Quick Ratio measures the ability of a company to use its cash or near cash assets to extinguish or pay-off its current liabilities immediately. Near cash assets are those that can be quickly converted to cash at close to their book values.Formula:ATR = (Current Assets - (Inventories + Prepayments)) / Current LiabilitiesA company with a quick ratio of less than 1 cannot currently pay-off all its current liabilities. Any good company would want to maintain their acid test ratio to be greater than 1 at all times.
There is no single ideal ratio.
D
inventory
For an ideal transformer, the voltage ratio is the same as its turns ratio.
The common mode rejection ratio of an ideal amplifier is infinity.