Explanation: judgemental appraisal method is a form of performance appraisal—a systematic, general and periodic process that assesses an job performance and productivity of employees in comparison to certain pre-established criteria and organizational objectives. The judgmental appraisal method is applied when assessing individual employee's job performance and productivity in areas that are difficult to measure. Vast majority of information gathered and delivered using this technique is subjective though there may be some parts that are objective.
By requesting that each subordinate be rated (performance evaluation) according to how closely the appraisal (pre-determined criteria) describes the employee, the company new form is an example of a judgmental appraisal method.
The acid test ratio of a company measure how well a company would be able to pay off its current liabilities using its most liquid current assets (current assets less inventory).
= (Cash + Accounts Receivable) / Current liabilities
