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Acid Test Ratio: Formula & Example

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

The acid test ratio is a measure of a company's ___________.

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1. The assets that are considered as part of the acid test ratio include ________________.

2. An acid test ratio of 3.3x indicates that the company's liquid assets could cover ________________.

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About This Quiz & Worksheet

The acid test ratio is one type of financial statement ratio. Test your understanding of the calculation of this specific ratio and what it indicates with this quiz and worksheet.

Quiz & Worksheet Goals

You will be assessed on:

  • Calculation of acid test ratio
  • What acid test ratio measures
  • Assets considered as a part of the acid test ratio

Skills Practiced

  • Knowledge application - use your knowledge to answer a question about what an acid test ratio of 3x3 indicates about a company's liquid assets
  • Information recall - access the knowledge you've gained regarding what an acid ratio test of 5.4x indicates about a company's liquid assets
  • Reading comprehension ensure that you draw the most important information from the lesson on acid test ratio

Additional Learning

Learn about acid test ratios by reviewing the lesson titled Acid Test Ratio: Formula & Example. The objectives covered include:

  • Know the formula for acid test ratio
  • Understand the interpretation of an acid test ratio
  • Define liquidity
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