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Match the term and the definition Terms 1. May provide some assurance that the company can pay its creditors in full and on time Acid-test

Match the term and the definition Terms
1. May provide some assurance that the company can pay its creditors in full and on time Acid-test ratio
2. Should be interpreted with care Current ratio
3. Computed by dividing quick assets by current liabilities Working Capitl
1. Measures how quickly credit sales are converted to cash Accounts receivable turnover ratio
2. Computed as 365 days divided by the accounts receivable turnover ratio Operating cycle
3. Measures the elapsed time from when inventory is received from suppliers to when cash is received from customers Average collection period

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