What is the meaning of acid test?

acid test is a stern measure of a company's ability to pay its short term debts, in that stock is excluded from asset value. (liquid assets/current liabilities) Also referred to as the Quick Ratio.

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APABarry Goldsmith. (2010). acid test. Retrieved September 21, 2026, from http://smartdefine.org/acid_test/definitions/1147097
ChicagoBarry Goldsmith. 2010. "acid test" http://smartdefine.org/acid_test/definitions/1147097 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, acid test, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/acid_test/definitions/1147097>.
MLABarry Goldsmith. "acid test" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/acid_test/definitions/1147097>
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