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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.
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 ...
Liquidity is a prime concern in a banking environment and a shortage of liquidity has often been a trigger for bank failures. Holding assets in a highly liquid form tends to reduce the income from that asset (cash, for example, is the most liquid asset of all but pays no interest) so banks will try to reduce liquid assets as far as possible.
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 statements' data is based on the accounting method and accounting standards used by the organisation. Purpose and types ... Acid-test ratio (Quick ratio) [18]
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, ...
If boric acid (or some other weak acid) was used, direct acid–base titration is done with a strong acid of known concentration. HCl or H 2 SO 4 can be used. Indirect back titration is used instead if strong acids were used to make the standard acid solution: strong base of known concentration (like NaOH) is used to neutralize the solution. In ...
The name "Acid Test" was coined by Kesey, after the term "acid test" used by gold miners in the 1850s.He began throwing parties at his farm at La Honda, California. [2] The Merry Pranksters were central to organizing the Acid Tests, including Pranksters such as Lee Quarnstrom and Neal Cassady.