How is the acid-test ratio calculated, and what does it signify?

Q: Define standard deviation

A: It refers to the variation in the actual observations from the average. Z-Score helps to know how…

Q: What is an acceptable current ratio?

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: Define Acid-test ratio with example.

A: Accounting Ratio:   A ratio is a number expressed in terms of another to establish relationship…

Q: Define acid-test ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How to determine FLEV and Spread and the noncontrolling intrest ratio.

A: Financial Leverage (FLEV): Financial Leverage is a financial ratio that represents the relationship…

Q: What is one interpretation of a high P/E ratio?

A: Price to earnings ratio (P/E ratio) states the relationship of the earnings with price of that…

Q: I the standard deviation for these first-exam scores

A: Solution S 2= 182.8 s = 13.5

Q: What are the Sharpe and Treynor rati pleces.) Sharpe ratio

A: The Sharpe and Treynor Ratios are both used to calculate the risk-adjusted return on an…

Q: Define the term Acid-test ratio with example.

A: Ratio analysis, horizontal analysis and vertical analysis are the analytical tools used by the…

Q: In an MUS application, how is the population size defined? What is the relationship between…

A: MUS stands for Monetary Unit Sampling. It defines the sampling unit as an individual dollar in an…

Q: What's the difference between the acid-test ratio and current ratio?

A: The ratio analysis helps to analyse the financial statements of the business.

Q: What is the difference between covariance and correlation?

A: Co-variance: A co-variance is nothing but a descriptive measure of linear interaction intensity…

Q: What is the difference between between beta and standard deviatio

A: In the world of finance in general and investing in particular we often use the concepts of beta as…

Q: Compute acid test ratio.

A: The Acid test ratio differs from the current ratio is that prepaid expenses and inventory are…

Q: How does the acid-test ratio differ from the current ratio?How are they similar?

A: Difference: The acid-test ratio and the current ratio are both measures of the short-term debt…

Q: What is the best measure of dispersion

A: As per general understanding -   Best method/ measure of dispersion is Standard deviation

Q: acid-test ratio

A: Acid-test ratio = (Total current assets - Inventory)/Current liabilities

Q: What is current ratio

A:

Q: What is the Quick (Acid Test) Ratio?

A: Acid-test ratio: The financial ratio which evaluates the ability of a company to pay off the instant…

Q: What type of testing are ratios?

A: Ratio:   It is a number expressed in terms of another to establish a relationship among them.

Q: How is propriety ratio calculated and what is its importance?

A: Formula for calculating propriety ratio:It is calculated by dividing the owner’s equity by total…

Q: How do you know to select the correct incoterm?

A: Meaning of incoterm:Incoterm or Inter Commercial Terms are nothing but set of pre-defined rules and…

Q: What is the tainting percentage? How is it calculated?

A:

Q: Explain the relationship between the conventionaL PW criterion and the B/C ratio?

A: The relationship between the cost of the project and benefits earned from the project is measured by…

Q: What is the relationship between the B/C ratio and the PW criterion?

A: The question is based on the concept of benefit to cost ratio analysis and present worth criteria…

Q: What are the differences and similarities between the Sharpe and Treynor measures?

A: Each asset or portfolio has a separate level of return and associated risk in response to the…

Q: What would the effect of the failure in the ratio measurement?

A: Ratio measurement in terms of financial world depicts that a single accounting figure by itself may…

Q: What is ratio analysis?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What is the meaning of acid test ratio?

A: Acid Test Ratio: Acid Test ratio or Quick Ratio is ratio which is measure or indicate the capacity…

Q: What does the current ratio measure?

A: Ratios are the group of metrics which are used to measure the profitability as well as efficiency of…

Q: WHAT IS THE TOTAL CURRENT RATIO?

A: Current ratio is a ratio used for measuring the liquidity of the business that how much current or…

Q: How is the Quick Ratio calculated?

A: Definition:   Quick ratio: The financial ratio which evaluates the ability of a company to pay off…

Q: Calculate Quick Ratio: AKA the Acid Test

A: The question is related to Ratio Analysis. Quick Ratio is a measure of short term solvency. It is…

Q: Describe the two basic differences between the weighted average and the FIFO method.

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: What does the acid test ratio state? Meaning what do the results mean?

A: Acid test ratio is also known as liquid ratio or quc ratio. This is calculated by dividing liquid…

Q: Why is current ratio used?

A: Current ratio is the measure of liquidity position of the company. It shows the ability of the…

Q: Explain an example how to calculate acid test ratio.

A: Liquidity Ratio: Liquidity ratio exhibits how the business is able to meet its short-term…

Q: How is the tainting percentage calculated?

A: Tainting percentage can be computed individually for each sampled item. In PPS sampling, the amount…

Q: How is the DuPont Model for ROE calculated?

A: Solution Note As per the Q&A guideline we are required to answer the first question only .…

Q: How do I find out standard deviation, mean and X for z score?

A: A z-score (also called a standard score) gives you an idea of how far from the mean a data point is.…

Q: How I can calculate the standard deviations of each of the two differentassets?

A: Standard deviation is a number which is used to tell how much the different member of a group differ…