Financial Definition of Acid-Test Ratio
Meaning of Acid-Test Ratio
Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.
Related Entries of Acid-Test Ratio in the Encyclopedia of Law Project
Browse or run a search for Acid-Test Ratio in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.
Acid-Test Ratio in Historical Law
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Legal Abbreviations and Acronyms
Search for legal acronyms and/or abbreviations containing Acid-Test Ratio in the Legal Abbreviations and Acronyms Dictionary.
What does Acid-test ratio mean in American Law?
The definition of Acid-test ratio in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:
See current ratio.
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What is Acid-Test Ratio?
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Concept of Acid Test Ratio in the context of Real Property
A short definition of Acid Test Ratio: A formula used by lending institutions to determine if a business can meet its current obligations. The formula adds cash plus receivables plus marketable securities and then divides by liabilities. A ratio of one to one is considered acceptable.
Concept of Acid Test Ratio in the context of Real Property
A short definition of Acid Test Ratio: A formula used by lending institutions to determine if a business can meet its current obligations. The formula adds cash plus receivables plus marketable securities and then divides by liabilities. A ratio of one to one is considered acceptable.
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