Current Assets : Current Liabilities
Quick Assets : Current Liabilities
Total Assets : Total Liabilities
Fixed Assets : Fixed Liabilities
Answer is Right!
Answer is Wrong!
The correct answer is: B. Quick Assets : Current Liabilities
The acid test ratio, also known as the quick ratio or the liquidity ratio, is a measure of a company’s ability to pay off its short-term debts with its most liquid assets. It is calculated by dividing a company’s quick assets by its current liabilities.
Quick assets are a company’s most liquid assets, which means they can be converted into cash quickly and easily. They include cash, short-term investments, and accounts receivable. Current liabilities are a company’s short-term debts, which must be
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