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acid-test ratio
ac·id-test ra·tio
(
plural
ac·id-test ra·tios
)
noun
Definition:
measure of solvency:
a measure of the debt-paying ability of a business in which cash, accounts receivable, and marketable securities are divided by the total current liabilities
Encarta® World English Dictionary [North American Edition] © & (P)2009 Microsoft Corporation. All rights reserved. Developed for Microsoft by Bloomsbury Publishing Plc.
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