Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Quick Ratio is also known as:

Options:

Quick Asset Ratio

Acid-Test Ratio

Current Ratio

Short-term ratio

Correct Answer:

Acid-Test Ratio

Explanation:

The correct answer is Option (2) - Acid-Test Ratio

Quick ratio is the ratio of quick (or liquid) asset to current liabilities.
It is expressed as Quick ratio = Quick Assets / Current Liabilities.
It is also known as acid test ratio or liquid ratio.