| Current Ratio = Current Assets / Current Liabilities
Acid Ratio = (Cash+ AR, etc.) / Current Liabilities
Example:
Year 1
Have 1,000 Current Liabilities
Have 1,000 Cash
Have 500 AR
Have 500 Inventory
Current Ratio = 2,000 / 1,000 = 2
Acid Ratio = 1,500 / 1,000 = 1.5
Year 2
Current Liabilities 1,000
Cash 500
AR 500
Inventory 1,500
Current Ratio = 2,500 / 1,000 = 2.5
Acid Ratio = 1000 / 1,000 = 1
Summary:
Current Ratio goes up from 2 to 2.5
Acid Ratio goes down from 1.5 to 1
Current Assets such as inventory, go up (therefore, raising total Current Assets), but assets affecting quick ratio goes down. | 
Linear Mode
