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June 30, 2020 9:39 pmpts 65 pts
  • UGC NET
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Define acid test ratio

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  • Anonymous User thankyou
    Generally, the acid test ratio should be 1:1 or higher; however, this varies widely by industry. In general, the higher the ratio, the greater the company's liquidity (i.e., the be...
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  • Anonymous User thankyou
    Generally, the acid test ratio should be 1:1 or higher; however, this varies widely by industry. In general, the higher the ratio, the greater the company's liquidity (i.e., the be...
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  • Anonymous User Best Answer
    The acid test ratio is a useful measure of the liquidity of a business. It is calculated by adding cash, marketable securities and accounts receivable and dividing that sum by shor...
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