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Sep 29, 2020 · Using the primary quick ratio formula, we can calculate Company XYZ's acid-test ratio as follows: ($60,000 + $10,000 + $40,000) / $65,000 = 1.7. This means that for every dollar of Company XYZ's current liabilities, the firm has $1.70 of very liquid assets to cover its immediate obligations.
Nov 21, 2023 · The acid test ratio, also known as the quick ratio or acid test, compares the short-term assets to the short-term liabilities of a company. It is an expression of the company's ability to pay the ...
The acid test ratio is one type of financial statement ratio. Test your understanding of the calculation of this specific ratio and what it indicates with this quiz and worksheet.
One test of a company's liquidity is the: a. debt ratio b. acid-test ratio c. return on stockholders' equity d. price-earnings ratio; Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2010. Also, indicate the effect of each item on Tibbetts Company that incurred during the fis
Dec 6, 2019 · Acid test是一种快速测试的实验，犹如测试某化学液体的酸性程度，将酸碱指示剂混入所需要测试的液体，颜色会随着其酸碱性而变。 把速动比率称为酸性测试比率. 是表示速动比率，像酸性测试比率那样，一代入公式，立刻可以知道结果，检验的效果明显。
Brewster Company has an acid-test ratio of 1.7 and a current ratio of 2.5. Current assets equal $220,000, of which $12,000 is prepaid expenses. The company's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and; Brewster Company has an acid-test ratio of 1.5 and current ratio of 2.5.
The collection of a current accounts receivable of $29,000 would ____. a. decrease the current ratio b. not affect the current ratio or the acid-test ratio c. decrease the acid-t; KPR has current assets of $10,000,000 and current liabilities of $4,500,000, inventory of $1,000,000 and sales of $12,000,000. What is the firm's acid test ratio?
Nov 21, 2023 · It can be calculated using the current ratio, the quick ratio (or acid-test ratio), and the cash ratio. The current ratio is equal to current assets divided by current liabilities.
A company's current ratio and acid-test ratios are both greater than one. The collection of a current accounts receivable of $29,000 would ____. a. decrease the current ratio b. not affect the current ratio or the acid-test ratio c. decrease the acid-t; The ratio of cash, trade receivables, and marketable securities to current liabilities is ...
Nov 21, 2023 · A quick ratio, (aka acid-test or acid-test ratio), is a formula used by business owners, financial institutions, investors, and other stakeholders to determine a company's ability to pay short ...
