Quick Ratio or Acid Test, a Liquidity Ratio
quick ratio The ideal standard quick ratio is 1: 1, which means that the company is not in a position to meet its immediate current liabilities; it may lead
Learning Outcomes The Quick Ratio, sometimes called the Acid Test Ratio, measures the firm's ability to pay its current liabilities with its cash and other quick ratio A Quick Ratio less than one indicates potential liquidity issues, suggesting the need for the firm to increase its liquid assets to cover short-
quick ratio The ideal standard quick ratio is 1: 1, which means that the company is not in a position to meet its immediate current liabilities; it may lead
quickbet Learning Outcomes The Quick Ratio, sometimes called the Acid Test Ratio, measures the firm's ability to pay its current liabilities with its cash and other
A Quick Ratio less than one indicates potential liquidity issues, suggesting the need for the firm to increase its liquid assets to cover short-