Use the information above to answer the question : The acid test ratio in the company is___________
A. 1:1 B. 2:3 C. 1:2 D. 3:2
Correct Answer: A
Explanation
Acid test ratio measures the liquidity position of a company after deduction stock (inventory) from current assets  Formula: current assets less inventory/current liabilities  18000 - 4000/14000 = 1 : 1