Quiz: Acid Test Ratio - Calculating and Interpreting
iGCSE Business Studies [Edexcel]
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Welcome! You've already studied how businesses manage and interpret financial data. Today, we'll focus on the **acid test ratio**, building on your knowledge of balance sheets and liquidity. Let’s get started!
What does the acid test ratio measure?
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The formula for the acid test ratio is ({{blank0}} + receivables) ÷ {{blank1}}.
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Which of the following are liquid assets? (Select all that apply)
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Match the items on the left with their correct pairs on the right
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A business has an acid test ratio of 0.8. What does this suggest?
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A ratio above {{blank0}} is generally considered healthy for the acid test ratio.
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Match the items on the left with their correct pairs on the right
If a business has an acid test ratio of 1.5, what does this indicate?
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