A common rule of thumb is that a company's acid-test ratio should be at least 2 or a company may face financial problems in the near future.

Name: A common rule of thumb is that a company's acid-test ratio should be at least 2 or a company may face financial problems in the near future.
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The common rule of thumb for the acid-test ratio is that it should be at least 1, not 2, to indicate that a company can cover its current liabilities without selling inventory.

A Common Rule of Thumb Is That a Company's Acid-Test