ACID TEST RATIO
acid test ratio: translation
Another name for the quick ratio. American Banker Glossary
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Also called the quick ratio, the ratio of current assets minus inventories ( inventory), accruals ( accrued interest), and prepaid items to current liabilities. Bloomberg Financial Dictionary
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An accounting ratio, usually defined as current assets (with the exception of stocks) divided by creditors falling due within one year. It is designed to test the short term solvency of a company, in a way similar to the current ratio and its interpretation is similar to the current ratio. It is also known as the quick ratio. Dresdner Kleinwort Wasserstein financial glossary
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acid test ratio UK US noun [S] (also acid ratio, also current ratio, also liquid ratio, also liquidity ratio, also quick ratio, also quick-assets ratio) ACCOUNTING
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