1. What is an acceptable acid-test ratio value?

2. The acid-test ratio assumes that all current liabilities are payable immediately and that the debtor will convert the mast liquid assets to cash.

3. The higher the acid-test ratio, the better able is the business to pay itts current liabilities.

4. In general, an acid-test ratio of 1.00 is considered safe.

5. Automobile dealers can operate smoothly with an acid-test ratio of 0. 20.