Acid Test Ratio
The acid test ratio measures how easily a company can pay its short-term debts using its most liquid assets, like cash and accounts receivable.
More terms under A
- Accrued RevenueAccrued revenue is the money a business earns from sales even if it hasn't been paid yet, usually because it hasn't sent an invoice to the customer right away.
- Accumulation PhaseThe accumulation phase is a period in the market that comes after prices have fallen. During this time, big investors begin to buy up assets gradually, which…
- Accumulation/Distribution IndicatorThe accumulation/distribution indicator helps show whether a cryptocurrency is being bought (accumulated) or sold (distributed) by combining its closing price…
- AcquisitionAn acquisition is when one company buys a large part of another company to take control of it.
- Acquisition CostAcquisition cost is the total amount you spend to buy an asset, like property or equipment, after accounting for any discounts, incentives, and additional…
- Acquisition PremiumAcquisition premium is the extra amount paid for a company above its market value when someone buys it.
Educational definition. Protocol rules and market conventions can differ; check an asset's official documentation.