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Question
______ is also known as the Acid Test Ratio.
Options
Current ratio
Quick ratio
Gross profit ratio
Return on investment ratio
MCQ
Fill in the Blanks
Solution
Quick ratio is also known as the Acid Test Ratio.
Explanation:
The Acid Test Ratio is another name for the Quick ratio. Excluding inventory from current assets gauges a company's capacity to satisfy its short-term obligations with its most liquid assets.
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