What is difference between Current Ratio, Quick Ration and Acid Test Ratio? Are they same?
Current ratio is
(current assets / current liabilities)
and Quick or Acid test ratio are the same as of current ratio but only a small difference. the difference is in calculation of current assets where stock will not be included
Edited: Muhammad Zargham Haider - 03/10/2011 10:07
yes there is a little difference but they are used for same pupose, to know the liquididty of the company
Users browsing this topic