A company has a current ratio of 1.25 but an acid-test (or quick) ratio of only 0.65. How can this difference in the two ratios be explained? What concerns might you have about this company?
Chapter 13, Questions #10
A company has a current ratio of 1.25 but an acid-test (or quick) ratio of only 0.65. How can this difference in the two ratios be explained? What concerns might you have about this company?
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!
Related Book For 
Using Financial Accounting Information The Alternative to Debits and Credits
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
ISBN: 978-1133161646