Certainly, earnings management can make financial ratios unusual, Such ratios as accounts receivable rate, accounts receivable turnover rate, debt ratio, quick ratio, sales tax ratio and period cost ratio can be the siginal of earnings management.
The quick ratio (or acid-test ratio) is an improvement to the current ratio.
The quick ratio reflects the relationship of quick assets to current liabilities it can tell analysts the ability of immediate debt paying.
Third, total assets, quick ratio, patterns of guarantee or collateral and number of operating years of firms also have influence on loan pricing.
What is an acceptable current ratio? The answer is similar to that of current ratio, that is to say, the figure of quick ratio also depends on the nature of the industry.
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