Which ratio is calculated using the formula: (Cash + Marketable Securities + Accounts Receivable) Current Liabilities?
Question:
Which ratio is calculated using the formula: (Cash + Marketable Securities + Accounts Receivable) ÷ Current Liabilities?
a. Quick (Acid-Test) ratio
b. Current ratio
c. Solvency ratio
d. Activity ratio
SolvencySolvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
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ISBN: 978-1119386223
2nd edition
Authors: Lea R. Dopson, David K. Hayes
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