Quiz: Acid Test Ratio - Calculation and Interpretation

WJEC Eduqas GCE A LEVEL in BUSINESS specification

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Building on what you've learned about financial ratios, let's test your knowledge of the Acid Test Ratio and how to calculate and interpret it!

Multiple ChoiceInteractive

What does the Acid Test Ratio measure?

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Which of the following assets are included in the Acid Test Ratio? (Select all that apply)

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Fill in the BlankInteractive

The Acid Test Ratio formula is {{blank0}} divided by {{blank1}}.

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MatchingInteractive

Match the items on the left with their correct pairs on the right

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Math EquationInteractive

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Multiple ChoiceInteractive

If a business has an Acid Test Ratio of 0.8, what does this indicate?

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Multi-SelectInteractive

Why might businesses prefer the Acid Test Ratio over the Current Ratio? (Select all that apply)

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Fill in the BlankInteractive

An Acid Test Ratio of {{blank0}} or higher is generally considered {{blank1}}.

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MatchingInteractive

Match the items on the left with their correct pairs on the right

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Math EquationInteractive

Match the items on the left with their correct pairs on the right

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