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Question
______ is also known as Acid-Test Ratio.
Options
Current Ratio
Quick Ratio
Gross Profit Ratio
Operating Ratio
MCQ
Fill in the Blanks
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Solution
Quick Ratio is also known as Acid-Test Ratio.
Explanation:
The Acid test ratio is another name for the quick ratio. Excluding inventory from current assets gauges a company’s capacity to satisfy its short-term obligations with its most liquid assets.
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