Acid-test Ratio
Acid-test Ratio definition :
Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.
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ACID-TEST RATIO
A ratio that shows how well a company could pay its current debts using only its most liquid or "quick" assets.
Acid-test ratio
Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities. ...
ACID-TEST RATIO - an analysis method used to measure the liquidity of a business by dividing total liqu...
ACKNOWLEDGE - certifying authenticity
ACKNOWLEDGEMENT - A statement by a person to the effect that they are aware of a certain fact. May also...
Acid-test ratio: A measure of a corporation's liquidity, calculated by adding cash, cash equivalents, and accounts and notes receivable, and dividing the result by total current liabilities.
Acid-Test Ratio Example
Coco Corp. has $175,000 in Current Assets and $120,000 in Current Liabilities. Furthermore, out of the $175,000 in Current Assets, $90,000 is Inventory. What is the Quick or Acid-Test Ratio?
acid-test ratio
The ratio of a company's current assets, excluding inventories, to current liabilities. The ratio indicates the company's ability to pay any debts without it being necessary to make further sales.
Acid-Test Ratio. Also called the quick ratio, it's equal to the sum of cash, short-term investments and net current receivables divided by current liabilities.
Acid-Test Ratio
Calculations
A second liquidity ratio that evaluates creditworthiness, the acid-test ratio stands as a more stringent test than the current ratio, hence its name.
Measuring Liquidity
Checklists ...
Acid-test ratio Also called the quick ratio, the ratio of minus inventories, accruals, and prepaid items to .
Acid-test ratio
The acid-test ratio, also called the quick ratio, is used to test the ability of the firm to meet its short-term obligations.
See also: Acid-test Ratio, Leverage, Shareholders Equity
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Debt-to-GDP Ratio
Equity Multiplier ...
Also known as the "acid-test ratio" or the "quick assets ratio".
Quid Pro Quo - A Latin phrase meaning "something for something".
acid-test ratio A test designed to determine whether or not a firm has enough short-term assets... acknowledge "Certify the authenticity of a signature on a brokerage or bank document, such as for an account transfer.
Short-term solvency ratios Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (1) the current ratio, (2) the acid-test ratio, (3) the inventory turnover ratio, ...
The acid-test ration is a measure of the liquidity of a business. It helps to answer the question, "If revenues stopped, could the business meet current obligations with assets that are readily convertible into cash?
See also Price/Earnings Ratio (P/E) , current ratio , operating ratio , capitalization ratio , return on invested capital , common stock ratio , acid-test ratio , quick ratio , net tangible assets per share , leverage , capital turnover , ...
Quick ratio is also called as the acid-test ratio. It measures the company’s liabilities and determines its position to pay off its obligations.
Rate
A rate is a measure which forms the basis of any financial transaction.
Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (1) the current ratio, (2) the acid-test ratio, (3) the inventory turnover ratio, and (4) the accounts receivable turnover ratio.
The cash asset ratio can be distinguished from the quick or acid-test ratio, which includes accounts receivable in its numerator.
 See also: Current ratio, Banks, Expense, Financial leverage, Accounts receivable turnover
  
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