Civil Engineering - Engineering Economy - Discussion

Discussion :: Engineering Economy - Section 1 (Q.No.2)

2. 

The ratio obtained by dividing 'quick assests' by current liabilities is called

[A]. Turnover ratio
[B]. Acid test ratio
[C]. Solvency ratio
[D]. None of these.

Answer: Option B

Explanation:

No answer description available for this question.

Rameshwar said: (Sep 28, 2018)  
The quick ratio is calculated by adding cash, cash equivalents, short-term investments, and current receivables together then dividing them by current liabilities. Sometimes company financial statements don't give a breakdown of quick assets on the balance sheet.

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