Quick Ratio (or Acid Test Ratio)
Filed Under: Business
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Financial Skills for Professionals$65.00 – $104.00
A more rigorous test than the Current Ratio of short-run solvency, the current ability of a firm to pay its current debts as they come due. This ratio is calculated by dividing total liquid assets, such as cash, marketable securities (cash equivalents), and accounts receivable by current liabilities.