How to illustrate the difference between the current ratio and the acid test ratio?
Submitted by: AdministratorTo illustrate the difference between the current ratio and the acid test ratio, let's assume that a company has current liabilities of $50,000 and has the following current assets:
★ Cash and cash equivalents $5,000
★ Short-term marketable securities $10,000
★ Accounts receivable, net $25,000
★ Inventory $56,000
★ Prepaid expenses $4,000
Submitted by:
★ Cash and cash equivalents $5,000
★ Short-term marketable securities $10,000
★ Accounts receivable, net $25,000
★ Inventory $56,000
★ Prepaid expenses $4,000
Submitted by:
Read Online Business Ratios Job Interview Questions And Answers
Top Business Ratios Questions
| ☺ | What is Accrued compensation? |
| ☺ | What is NOI? |
| ☺ | Described turnover? |
| ☺ | Define leverage? |
| ☺ | Described financial leverage? |
Top Business and Economics Categories
| ☺ | Taxation Interview Questions. |
| ☺ | Economics Interview Questions. |
| ☺ | Accounts Receivable (AR) Interview Questions. |
| ☺ | General Ledger Interview Questions. |
| ☺ | Fixed Assets Interview Questions. |
