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Investing > Acid Test Ratio
The following information is about Acid Test Ratio.
Acid Test Ratio Defined
A ratio that tests a corporation's liquidity. It is a stricter test than if the current ratio is used. The ratio is calculated by dividing the sum of cash, cash equivalents, accounts receivable and notes receivable by the total current liabilities.
See Also: Current Ratio; Quick Asset Ratio
This definition is in context to Investing. See more contextual defintions for Acid Test Ratio.
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