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State about the Quick ratio or acid test
Quick ratio = Current assets less inventories /Current liabilities(times)
This ratio measures immediate solvency of a business as it removes inventories out of the equation, which is item least representing cashitem, because it needs to be sold. Normal is around 1: 1 however this varies within different industries.
FIXED ASSETS 200 000 LONG TERM LIABILITIES CURRENT ASSETS CASH 40 000 LOAN
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Can some one tell me the defination of Historical weights and how we calculate the historical weight?? And given the diffrence between Historical weight Vs Marginal weights??
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