Cambridge Dictionaries online Cambridge Dictionaries online

The most popular online dictionary and thesaurus for learners of English

English definition of “acid test ratio”

acid test ratio

noun [S]
 
 
( also acid ratio, also current ratio, also liquid ratio, also liquidity ratio, also quick ratio, also quick-assets ratio) ACCOUNTING
a measure of a company's 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.
(Definition of acid test ratio from the Cambridge Business English Dictionary © Cambridge University Press)
What is the pronunciation of acid test ratio?
Add Cambridge dictionaries to your browser to your website

More Business English definitions for “acid test ratio”

Word of the Day

nation

a country, especially when thought of as a large group of people living in one area with their own government, language, traditions, etc.

Word of the Day

Think long and hard; the language of decisions

by Liz Walter,
January 28, 2015
One of the best ways (perhaps the best way) to improve your English is to learn how words go together in phrases, idioms, or other patterns such as verb/noun or adjective/noun pairs (often called ‘collocations’). This blog looks at some useful phrases and collocations connected with the subject of decisions, something we

Read More 

micro pig noun

January 26, 2015
an extremely small pig, bred to be a pet Micro pigs have become popular pets recently, with famous owners including Victoria Beckham, Paris Hilton and Olympic diver, Tom Daley.

Read More