intro to bus 2 chapter 15 understanding accounting and fin sys: measures the ability of a firm to meet its debt payments on short notice
acid test ratio = current assets - inventory / current liabilities
it needs to be more then 1.0 - rule of thumb

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measures the ability of a firm to meet its debt payments on short notice 
acid test ratio = current assets - inventory / current liabilities 
it needs to be more then 1.0 - rule of thumb

Kai Pineau · Accepted Answer

acid-test or quick ratio

intro to bus 2 chapter 15 understanding accounting and fin sys

Measures the ability of a firm to meet its debt payments on short notice acid test ratio = current assets - inventory / current liabilities it needs to be more then 1.0 - rule of thumb

Acid-test or quick ratio

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