The acid-test ratio is usually greater than the current ratio.

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deborah rodriguez · Accepted Answer

Final Answer : False, Explanation :  The acid-test ratio (also known as the quick ratio) is calculated by subtracting inventories from current assets and then dividing by current liabilities. This ratio provides a more stringent test of a company's ability to pay its short-term liabilities because it excludes inventories, which may not be as easily converted to cash. As a result, the acid-test ratio is usually lower than the current ratio, which includes inventories.

The acid-test ratio is usually greater than the current ratio.

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