If stock is removed from the analysis when calculating the acid test ratio, why isnt the figure

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If stock is removed from the analysis when calculating the acid test ratio, why isn’t the figure for debtors also removed? Debtors can be just as difficult to turn into cash.

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Frank Woods Business Accounting Volume 2

ISBN: 9780273693109

10th Edition

Authors: Frank Wood, Alan Sangster

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Question Posted: Sep 10, 2023 06:05 AM

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If stock is removed from the analysis when calculating the acid test ratio, why isnt the figure

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Debtors can be very difficult to turn into cash However there are three aspects of debtors that make ...View the full answer

Frank Woods Business Accounting Volume 2

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