Current ratio measures the ability to cover short-term debts with current assets. For every dollar in current liabilities, Bao Viet Holdings had 5.46 dollar in 2009 and 2.93 dollar in 2010. Although this decrease showed the less liquidity, the ratio in 2010 indicates the more effective using of current assets since it reached nearly ideal range. -Acid test ratio measures the ability to meet short-term obligations with the most liquid assets excluding inventory and prepayments. For every dollar in currents liabilities, Bao Viet Holdings had 5.41 dollar in 20099 and 2.93 dollar in 2010.

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While current ratio is used to determine the ability of a business entity to cover its shortterm debts with its current assets the acid test ratio is ... View the full answer