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    swicks00's Avatar
    swicks00 Posts: 1, Reputation: 1
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    #1

    Nov 7, 2011, 08:12 AM
    Acid Test Ratio
    Cash $1,200 Prepaid expenses $600
    Accounts receivable 2,700 Accounts payable 4,750
    Inventory 5,000 Other current liabilities 950

    Using the above information on current assets and current liabilities compute the acid-test ratio. (Round your answer to 2 decimal places.)
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Nov 7, 2011, 09:18 AM
    Acid Test Ratio = (Current Assets - Inventory - Prepaid Expenses) / Current Liabilities

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