Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 50)
What is the formula for calculating the quick ratio (acid-test ratio)?
(Current Assets - Inventory) / Current Liabilities
Current Assets / Current Liabilities
Sales / Average Inventory
Net Income / Total Assets
Explicaţie
The quick ratio excludes inventory from current assets to provide a more conservative liquidity measure.