What is the Acid-Ratio?
The Acid-Test Ratio, sometimes called the Quick Ratio, is a liquidity ratio that assesses a company’s capacity to settle its immediate liabilities using its most liquid assets. Usage It measures how much of a company’s present assets are liquid, or easily convertible into cash to settle its immediate liabilities. The Acid-Evaluation Ratio does not include […]
What is the Acid-Ratio? Read More »
The Acid-Test Ratio, sometimes called the Quick Ratio, is a liquidity ratio that assesses a company’s capacity to settle its immediate liabilities using its most liquid assets. Usage It measures how much of a company’s present assets are liquid, or easily convertible into cash to settle its immediate liabilities. The Acid-Evaluation Ratio does not include