Question
The numerator of current ratio consists of cash, accounts receivables, and inventory, while the numerator of acid-test ratio only consists of cash and accounts receivables.
The numerator of current ratio consists of cash, accounts receivables, and inventory, while the numerator of acid-test ratio only consists of cash and accounts receivables. The denominators of current ratio and acid-test ratio are the same. Therefore, current ratio is always higher than acid-test ratio. True or False?
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Report On Trade Conditions In China
Authors: Harry R. Burrill, Raymond F. Crist
1st Edition
1138617806, 9781138617803
