The terms acid-test ratio and quick ratio refer to the same ratio--the instant debt-paying ability of a company.

Name: The terms acid-test ratio and quick ratio refer to the same ratio--the instant debt-paying ability of a company.
Brand: Quizplus
Rating: 4.7 (39 reviews)

Question

Quizplus · Accepted Answer

The terms acid-test ratio and quick ratio are used interchangeably to refer to the same ratio, which measures a company's ability to pay off its short-term debts using its most liquid assets.

The Terms Acid-Test Ratio and Quick Ratio Refer to the Same