WebbThe formula for Acid-test is – Acid-Test Ratio = Cash + Short Term Investments + Current Receivables –Inventory –Prepaid Expenses / Current Liabilities Put value from the balance sheet in the above formula. Acid-Test Ratio = 50 000 + 10,000 + 2,000 + 8,900 – 3,000 / 36,450 Acid-Test Ratio = 1.86 WebbThe Quick Ratio of a company is 0.8 : 1. State with reason whether the following transactions will increase, decrease or not change the quick ratio : (1) Purchase of …
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The quick ratio is an indicator of a company’s short-term liquidityposition and measures a company’s ability to meet its short-term obligations with its most liquid assets. Since it indicates the company’s ability to … Visa mer The quick ratio measures the dollar amount of liquid assets available against the dollar amount of current liabilities of a company. Liquid … Visa mer The quick ratio is more conservative than the current ratiobecause it excludes inventory and other current assets, which are generally more difficult to turn into cash. The quick ratio considers only assets that can be … Visa mer There's a few different ways to calculate the quick ratio. The most common approach is to add the most liquid assets and divide the total by current liabilities: Quick Ratio=“Quick Assets”Current Liabilities\begin{aligned}&\textbf{Quick … Visa mer Webb30 mars 2024 · considered adequate. b.) The company's ability to pay off its short term debt falls below what industry generally considers adequate. c.) The company's current … current accounts lloyds bank
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WebbBest Answer. 1 an …. Creditors would prefer a quick ratio of 1.2 to a quick ratio of 0.8 a quick ratio of 0.8 to a quick ratio of 1.2 days sales outstanding of 46 to a days sales outstanding of 35 days sales outstanding of 35 to a days sales outstanding of 46 Preferred stock dividends are usually cumulative. WebbA company's current ratio is 2.2 to 1 and quick (acid-test) ratio is 1.0 to 1 at the beginning of the year. At the end of the year, the company has a current ratio of 2.5 to 1 and a... WebbQuick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs. 60,000. Determine value of stock. A Rs. 54,000 B Rs. 60,000 C Rs. 1,62,000 D None of the above Medium … current accounts for 16 year olds uk