Term:
Acid-Test, Liquid, Quick Ratio
Definition:

The standard IBRD definition is the ratio of cash plus marketable securities plus accounts receivable plus other amounts readily convertible into cash to current liabilities. Other definitions include ratio of current assets less inventories to current liabilities ratio of quick assets to current liabilities, ratio of cash plus near-cash assets to current liabilities, and ratio of cash plus accounts receivable plus the market value of selected investments to current liabilities.

Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt
arrow-up icon
Feedback