quick ratio may not be better. For example, a company may be sitting on a very large cash balance. This capital could be used to generate company growth or invest in new markets. There is often a fine line between balancing short-term cash needs and spending capital for long-term ...
quick ratio may not be better. For example, a company may be sitting on a very large cash balance. This capital could be used to generate company growth or invest in new markets. There is often a fine line between balancing short-term cash needs and spending capital for long-term ...
The formula for the quick (acid-test) ratio is:A.Current assets divided by current liabilitiesB.Cash plus cash equivalents divided by current liabilitiesC.Inventory plus prepaid expenses plus supplies divided by current liabilitiesD.Cash plus short-term
The quick ratio is different from thecurrent ratio,as inventory and prepaid expense accounts are not considered in quick ratio because, generally speaking, inventories take longer to convert into cash and prepaid expense funds cannot be used to paycurrent liabilities. For some companies, however, in...
Quick ratio (also known as asset test ratio) is a liquidity ratio which measures the dollars of liquid current assets available per dollar of current liabilities.
What is the Quick Ratio Formula? Quick Ratio Examples Lesson Summary Frequently Asked Questions What is a quick ratio in accounting? A quick ratio is a measure of liquidity used to assess a business's ability to cover short-term financial obligations. The formula for a quick ratio compares ...
单项选择题 List the formula for ( ) A. the current ratio B. the accounts receivable collection period C. the quick ratio D. the inventory turnover period 点击查看答案
16、y analysis general tips:(1) the factors of increasing liquidity: the bank loan index that can be used; the long term assets ready for quick liquidation; the reputation of debt paying ability.(2) factors that weaken Liquidity: non recorded or contingent liabilities; contingent liabilities ari...
For calculation, you can use theQuick Ratio Calculator Formula: The formula for it can be in two forms: Quick / Acid Test Ratio = Quick Current Assets / Quick Current Liabilities Or Current Assets less Inventory and Prepaid Expenses / Current Liabilities less Bank Overdraft and Cash Credit ...