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Acid - from the assets and therefore available for...

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Acid-test ratio.  The  acid-test ratio  is also called the  quick ratio Quick assets  are defined as  cash, marketable (or short-term) securities, and accounts receivable and notes receivable, net of the  allowances for doubtful accounts. These assets are considered to be very liquid (easy to obtain cash 
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Unformatted text preview: from the assets) and therefore, available for immediate use to pay obligations. The acid-test ratio is calculated by dividing quick assets by current liabilities....
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