The-definition.com

Definition

Acid-test (quick) ratio

Acid-test (quick) ratio is a measure of a company’s immediate short-term liquidity; computed by dividing the sum of cash, short-term investments, and net receivables by current liabilities. Thus, it is an important complement to the current ratio.

Share it:  Cite

More from this Section

  • State unemployment taxes
    State unemployment taxes refer to taxes that are imposed on the employer by states that ...
  • Accruals
    Accruals are adjusting entries for either accrued revenues or accrued expenses. Companies ...
  • Annual report
    Annual report is the document in which businesses summarize their financial condition ...
  • Cost Drivers
    A cost driver refers to any factor or activity that has a direct cause-effect relationship ...
  • Contra asset account
    Accumulated Depreciation- Office Equipment is a contra asset account which is an account ...