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

Q: Define the term Current ratio with example.

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

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: How the other ratios affects the ROE?

A: Return on equity is used to measure the company’s ability to utilize their assets to generate…

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: How do we calculate the current ratio?

A: Current ratio: Current ratio categorized under liquidity ratio which is helps to know the liquidity…

Q: Explain the calculation procedures for and significance of the current ratio.

A: The ratio analysis helps to analyze the financial statements of the business including elements of…

Q: Compute acid test ratio.

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

Q: Why is Quick Ratio deemed a better measure than the two other measures? Explain:

A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…

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 does a high current ratio indicate?

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

Q: Explain the reasoning underlying the name of the weighted-average method.

A: The reason in underlying the name of the weighted average method is explained as below,

Q: acid-test ratio

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

Q: What is current ratio

A:

Q: What caused a decrease in the current ratio?

A: The current ratio is the ratio that is used to calculate the ability of the company to pay off its…

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: What is the difference between arithmetic and geometric mean returns?

A: The difference between arithmetic mean return and geometric mean return is mainly in two aspects…

Q: Calculate the current ratio

A: The current ratio is the ratio of current assets to the current liabilities. It shows the ability of…

Q: Define current ratio.

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

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: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

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: What does the quick ratio measure?

A: Ratio Analysis is a financial tool used to derive conclusions about the company’s health and overall…

Q: Current ratio formula?

A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: how was the rate found?

A: Details about property are as follows: Name of Item Date of purchase Relates to which Quarter…

Q: How can we determine the mean and variance of the NPW on the basis of the three NPW estimates?

A: Identify the Rate, project life. Then Identify the cash flows. Compute the Present worth and net…

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: 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: What is the difference between the current ratio and the quick ratio?

A: Ratio analysis is a method of measuring the financial position of the organization with different…

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

A: The company calculates various ratio for measuring the solvency, liquidity & profitability of…

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: Compute for the returns, average of returns and Standard Deviation:

A: Returns Xi is the holding period return for stock prices. Xi= P1/P0 -1 Mean Xbar = ∑Xi/n Standard…