- acid ratio test
- Method of financial analysis involving ratio of cash and receivables to current liabilities. Sum of cash, marketable securities, and receivables divided by current liabilities.Also called the "quick ratio."
Black's law dictionary. HENRY CAMPBELL BLACK, M. A.. 1990.
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acid ratio — ➔ ratio * * * acid ratio UK US noun [S] ACCOUNTING ► ACID TEST RATIO(Cf. ↑acid test ratio) … Financial and business terms
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ratio — the proportional relationship of one thing to another * * * ratio ra‧ti‧o [ˈreɪʆiəʊ ǁ ˈreɪʆoʊ] noun [countable] a relationship between two amounts that is represented by a pair of numbers showing how much greater one amount is than the other: •… … Financial and business terms
test — The event of a price movement that approaches a support level or a resistance level established earlier by the market. A test is passed if prices do not go below the support or resistance level, and the test is failed if prices go on to new lows… … Financial and business terms
acid test — 1. The ratio of *current assets to *current liabilities. The acid test ratio is a quick means of assessing an entity’s *liquidity and its alternative names include the quick ratio and the liquid ratio. Only liquid current assets are used in the… … Auditor's dictionary
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 — 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
Test ácido — Ratio contable que indica cómo de buena es la liquidez o la solvencia de la empresa a corto plazo, y para ello utiliza el activo circulante y el pasivo circulante, que son las partidas de más corto plazo del balance. Si el test ácido fuese menor… … Wikipedia Español
test — 1. To prove; to try a substance; to determine the chemical nature of a substance by means of reagents. 2. A method of examination, as to determine the presence or absence of a definite disease or of some substance in any of the fluids, tissues,… … Medical 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