
Acid Test Ratio: The ratio which determines that the company is able to meet the short-term obligations or not with the help of quick assets is the acid-test ratio. The short-term liquidity of a company is determined by this ratio.
To determine: (a) Working capital, (b) current ratio and (c) acid-test ratio.

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Chapter 18 Solutions
Accounting Principles, Volume 2: Chapters 13 - 26
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