English version

acid ratio

From Longman Business Dictionary
Related topics: Finance
acid ratioˈacid ˌratio (also acid-test ratio), current ratio, liquid ratio test ACCOUNTING the relationship between the total amount that a business has in cash, in its bank accounts, and owed by customers, and the total amount that it owes to suppliers. By checking this relationship it is possible to see whether the business is SOLVENT (=able to pay immediately the money it owes) ratio
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