acid test ratio
noun[S]
ACCOUNTINGukus(alsoacid ratio);(alsocurrent ratio);(alsoliquid ratio);(alsoliquidity ratio);(alsoquick ratio);(alsoquick-assets ratio)ameasureof a company'sabilitytopaycostsand makenecessarypaymentsin the nearfuture. It iscalculatedbyaddingtogetheritscashandassetsthat caneasilybechangedintocash, anddividingthetotalby thenumberofdebtsthat it has.