The higher the acid-test ratio,the less able the business is to pay its current liabilities.

Name: The higher the acid-test ratio,the less able the business is to pay its current liabilities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The higher the acid-test ratio, the more able the business is to pay its current liabilities. This is because a higher acid-test ratio indicates that the business has more liquid assets available to cover its short-term liabilities.

The Higher the Acid-Test Ratio,the Less Able the Business Is