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Which is true for Acid test ratio? a. this ratio is for liquidity measurement for acids and chemicals in chemical industry b. this ratio is for liquidity measurement for chemical industry on the whole c. this ratio does not specifically relate to chemical industry it is a general measurement of liquidity of any firm d. this ratio shows the percentage of acids by volume, required to normalize bases.
c. this ratio does not specifically relate to chemical industry it is a general measurement of liquidity of any firm
Option C is for accountants
Remaining all belong to chemistry lab :p
Correct answer is C
Option C
Option - C. Acid test ratio or quick ratio is the ability of a company to meet its immediate liabilities without using the inventories.
Acid test ratio (Quick ratio)= (cash & bank balance+ receivables+short term investments)/ current liabilities
c <<< C . this ratio does not specifically relate to chemical industry it is a general measurement of liquidity of any firm>>>>
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