Acid Test 1100 Words You Need Week 41 Day 2

Acid Test 1100 Words You Need Week 41 Day 2 Acid Test 1100 Words You Need Week 41 Day 2 the conclusive test of value or success, decisive test, litmus test, touchstone, indicator, trial, criterion, confirmation The acid test (or quick ratio) recognises that inventory often takes a long time to convert into cash. It therefore excludes inventory values from liquid assets. Traditionally textbooks tell us that this ratio should exceed 1:1 but once again many successful companies operate below this level. In practice a company’s current ratio and acid test should be considered alongside the company’s operating cash flow. ...

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