Chapter 1 Flashcards
1
Q
Acid test ratio and recommended ratio.
A
Current assets - stock:current liabilities
Should be 1:1
2
Q
Solvency test and recommended ratio
A
Total assets:total liability
Should be 2:1
Acid test ratio and recommended ratio.
Current assets - stock:current liabilities
Should be 1:1
Solvency test and recommended ratio
Total assets:total liability
Should be 2:1