The Acid Test Ratio also known as t

The Acid Test Ratio also known as the Quick or Liquid ratio does not include the ending inventory, so the measure of the liquidity of the company will be more precise (or direct). Because it takes time to convert inventory into cash, so it can not be considered to be liquid. This ratio is considered better indicators of current business to repay debt capacity. General Health test assets ratio of at least 1: 1, the ratio of lower acid test showed the presence of liquidity problems companies, but greater than 1: 1 ratio showed cash idle. Acid test optimal ratio of 1: 1. The ratio between the 20X3 and 20X4 rise, indicating that the club can meet its current liabilities. Negative factors will affect this ratio are included: increased current assets (trade receivables funds, banks or cash); increase in current liabilities (trade payables or bank overdraft) will affect this rate. Because this ratio does not include inventory, so it is not considered liquid assets. A substantial increase in inventories is a serious issue to cover the current ratio, this ratio only become apparent when computing Acid Test Ratio. Acid Test Ratio ratio of less than 1: 1 would be the company's ability to pay (accounts payable / accounts payable) have a serious impact.

The Acid Test Ratio also also right as Quick or Liquid ratio does not include end-of-period inventory, so the measurement of company liquidity is more accurate (or direct). Because inventory takes time to convert into cash, it cannot be considered liquid. This ratio is considered to be a better indicator of a company's ability to repay its current debt. Generally, the health asset test ratio is at least 1:1, and a lower acid test ratio indicates a liquidity problem in the company, while a ratio greater than 1:1 indicates that cash is idle. The optimal acid test ratio is 1:1. The rate rises between 20X3 and 20X4, indicating that clubs can cope with their current liabilities. The downsides that affect this ratio include an increase in current assets (trade receivables, banks or cash); Because this ratio does not include inventory, it is not considered a current asset. The large increase in inventory is a serious problem that masks the current ratio, which becomes apparent only when the Acid Test Ratio is calculated. The Acid Test Ratio ratio of less than 1:1 can have a serious impact on the company's ability to pay (accounts payable/accounts payable).

液体20X4孔负债。会影响这一比率的不利因素都包括：增加流动资产(应收贸易款，银行或现金)；流动负债的增加(贸易应付款或银行透支)都会影响这一比率。因为此比率不包括库存，所以它不被视为流动资产。库存的大量增加是掩盖当前比率的一个严重问题，该比率只有在计酸测试比1:1<br>