liquid ratio
An alternative term, common in the United Kingdom, for the *acid test ratio.

Auditor's dictionary. 2014.

Look at other dictionaries:

  • liquid ratio — UK US noun [C] ► ACCOUNTING ACID TEST RATIO(Cf. ↑acid test ratio) …   Financial and business terms

  • liquid ratio — quick ratio A ratio used for assessing the liquidity of a company; it is the ratio of the liquid assets (i.e. the current assets less the stock) to the current liabilities. Although there is no rule of thumb, and there are industry differences, a …   Accounting dictionary

  • liquid ratio — quick ratio A ratio used for assessing the liquidity of a company; it is the ratio of the liquid assets (i. e. the current assets less the stock) to the current liabilities For example, a company has current assets of £250, 000, including stock… …   Big dictionary of business and management

  • liquid ratio — /lɪkwəd ˈreɪʃioʊ / (say likwuhd raysheeoh) noun the ratio of a company s liquid assets to its current liabilities. Also, liquidity ratio …   Australian English dictionary

  • liquid ratio — n. (Accounting) index of liquid assets of a business compared to its current debts (used to estimate financial stability in the immediate future) …   English contemporary dictionary

  • liquid ratio test — ➔ test1 …   Financial and business terms

  • liquid assets — liquid capital; = quick assets; = realizable assets Assets held in cash or in something that can be readily turned into cash with minimal capital loss (e.g. deposits in a bank current account, trade debts, marketable investments). The ratio of… …   Accounting dictionary

  • liquid assets — liquid capital; quick assets; realizable assets Assets held in cash or in something that can be readily turned into cash with minimal capital loss (e. g. deposits in a bank current account, trade debts, marketable investments). The ratio of these …   Big dictionary of business and management

  • ratio — the proportional relationship of one thing to another * * * ratio ra‧ti‧o [ˈreɪʆiəʊ ǁ ˈreɪʆoʊ] noun [countable] a relationship between two amounts that is represented by a pair of numbers showing how much greater one amount is than the other: •… …   Financial and business terms

  • ratio analysis — The use of accounting ratios to evaluate a company s operating performance and financial stability. Such ratios as return on capital employed and gross profit percentage can be used to assess profitability. The liquid ratio can be used to examine …   Big dictionary of business and management

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