• The acid-test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities.


    Acid-Test Ratio meaning & definition 1 of Acid-Test Ratio.


  • a measure of a companys ability to pay costs and make necessary payments in the near future. It is calculated by adding together its cash and assets that can easily be changed into cash, and dividing the total by the number of debts that it has.

    Acid-Test Ratio meaning & definition 2 of Acid-Test Ratio.

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