Refers to the ratio of cash, cash equivalents and accounts receivable relative to the total current liabilities. It is also known as the Acid Test Ratio. This measure of liquidity is more rigorous than the Current Ratio. Found on http://www.oasismanagement.com/glossary/
Refers to the ratio of cash, cash equivalents and accounts receivable relative to the total current liabilities. It is also known as the Acid Test Ratio. This measure of liquidity is more rigorous than the Current Ratio.