Quick Ratio (or Acid Test Ratio)

Filed Under: Business

1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).


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.

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