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Question
______ is also known as the acid test ratio.
Options
Current ratio
Quick ratio
Gross profit ratio
Return on investment ratio
MCQ
Fill in the Blanks
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Solution
Quick ratio is also known as the 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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