Multiple choice Which of the following is the correct formula for Absolute Acid Test Ratio? Liquid Assets/Current Liabilities Absolute liquid assets/current assets Current assets/current liabilities Absolute liquid assets/current liabilities None of these Reveal answer Fill a bubble to check yourself D Correct answer Explanation Absolute liquid assets are equal to liquid assets minus accounts receivables (including bills receivables). Some examples of absolute liquid assets are cash, bank balance and marketable securities, etc.