acid test ratio
- Financial test of solvency comparing a firm’s liquid assets and liabilities.
American business jargon. 2014.
Look at other dictionaries:
acid test ratio — Also known as the quick ratio. An accounting ratio designed to test the short term insolvency of a company. This ratio is usually calculated as current assets (with the exception of stocks) divided by creditors falling due within one year.… … Law dictionary
Acid-Test Ratio — A stringent indicator that determines whether a firm has enough short term assets to cover its immediate liabilities without selling inventory. The acid test ratio is far more strenuous than the working capital ratio, primarily because the… … Investment dictionary
Acid Test Ratio — Liquiditätsgrade sind insbesondere in der Unternehmensfinanzierung und der Finanzbuchhaltung verwendete betriebswirtschaftliche Kennzahlen, mit denen die Fähigkeit eines Unternehmens, seinen Zahlungsverpflichtungen fristgerecht nachzukommen,… … Deutsch Wikipedia
acid test ratio — Another name for the quick ratio. American Banker Glossary Also called the quick ratio, the ratio of current assets minus inventories ( inventory), accruals ( accrued interest), and prepaid items to current liabilities. Bloomberg Financial… … Financial and business terms
acid-test ratio — Fin an accounting ratio used to measure an organization’s liquidity. The most common expression of the ratio is: (Current assets – Inventory) / Current liabilities = Acid test ratio If, for example, current assets total $7,700, inventory amounts… … The ultimate business dictionary
acid test ratio — / æsɪd test reɪʃɪəυ/ noun same as liquidity ratio … Dictionary of banking and finance
Acid-test ratio — Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities. The New York Times Financial Glossary … Financial and business terms
acid test ratio — a ratio of cash, receivables, and marketable securities to current liabilities, used in determining credit risks. * * * … Universalium
acid-test ratio — See: liquid ratio … Accounting dictionary
acid-test ratio — See liquid ratio … Big dictionary of business and management
acid test ratio — a ratio of cash, receivables, and marketable securities to current liabilities, used in determining credit risks … Useful english dictionary