
Acid-test Ratio: It is a ratio used to determine a company’s ability to pay back its current liabilities using only liquid assets that are current assets except the inventory and prepaid expenses.
Inventory Turnover: It is a part of liquidity ratios used during the process of ratio analysis. It reflects the number of times a company’s inventory is converted into sale during a particular period.
To compute: The current ratio, acid-test ratio, accounts receivable turnover and inventory turnover at December 31, 2017 for company F.

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Accounting Principles - Standalone book
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