Respuesta :

The acid-test ratio is based on a more conservative measure than the current ratio of the company's ability to liquidate more.

What is Acid - Test Ratio?

  • The fast ratio, also referred to as the acid-test ratio, examines information from a company's balance sheet to determine whether it has enough short-term assets to pay its short-term liabilities.
  • The acid-test, also known as the quick ratio, determines if a corporation has enough cash on hand to cover its immediate liabilities, such as short-term debt, by comparing its most short-term assets to its most short-term liabilities.
  • Current assets that are difficult to dispose rapidly, such inventory, are disregarded by the acid-test ratio.
  • If a corporation has current liabilities that are due but cannot be paid immediately, or accounts receivable that take longer than usual to be collected, the acid-test ratio may not be a good indicator of the firm's financial health.

To learn more about acid-test ratio with the given link

https://brainly.com/question/17251234

#SPJ4

ACCESS MORE
EDU ACCESS
Universidad de Mexico