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In finance, the quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures the ability of a company to use near-cash assets (or 'quick' assets) to extinguish or retire current liabilities immediately. It is the ratio between quick assets and current liabilities. A normal liquid ratio is considered to be 1:1.
Quick ratio (also known as an acid test) or current ratio, accounting ratios used to determine the liquidity of a business entity; In accounting, the liquidity ratio expresses a company's ability to repay short-term creditors out of its total cash. It is the result of dividing the total cash by short-term borrowings.
The quick ratio is calculated by deducting inventories and prepayments from current assets and then dividing by current liabilities, giving a measure of the ability to meet current liabilities from assets that can be readily sold. A better way for a trading corporation to meet liabilities is from cash flows, rather than through asset sales, so;
Financial analysts also employ the "acid test" nickname for the quick ratio method, which assesses the liquidity of a business. The term "acid test" took on a different meaning in the realm of experiences with the psychedelic drug LSD, [9] popularized by the Merry Pranksters. This association stems from the drug's colloquial name, "acid" (which ...
A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting , there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
Acid test is a qualitative chemical or metallurgical assay which uses acid, ... Quick ratio, or acid-test ratio, a type of financial liquidity ratio; Acid Tests, ...
Calcium oxide (formula: Ca O), commonly known as quicklime or burnt lime, is a widely used chemical compound. It is a white, caustic , alkaline , crystalline solid at room temperature . The broadly used term lime connotes calcium-containing inorganic compounds , in which carbonates , oxides , and hydroxides of calcium, silicon , magnesium ...
The respiratory exchange ratio (RER) is the ratio between the metabolic production of carbon dioxide (CO 2) and the uptake of oxygen (O 2). [3] [4] The ratio is determined by comparing exhaled gases to room air. Measuring this ratio is equal to RQ only at rest or during mild to moderate aerobic exercise without the accumulation of lactate.