acid test ratio

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.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • acid test ratio — / æsɪd test reɪʃɪəυ/ noun same as liquidity ratio …   Dictionary of banking and finance

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  • acid-test ratio — See: liquid ratio …   Accounting dictionary

  • acid-test ratio — See liquid ratio …   Big dictionary of business and management

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  • acid test ratio —  Financial test of solvency comparing a firm’s liquid assets and liabilities …   American business jargon

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