Acid-Test Ratio
The acid-test ratio, also called the quick ratio, evaluates a company’s short-term liquidity by measuring its ability to pay current liabilities using only quick assets like cash, receivables, or marketable securities. Excluding inventory, it provides a stricter test than the current ratio. A ratio above 1 usually signals strong liquidity.
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All-Purpose Financial Statement
A financial report designed for general use by a wide audience management, investors, creditors, or regulators. It usually includes standard…
All-Inclusive Income Statement
A version of the income statement that includes all items affecting net income, operating results, gains, losses, and unusual or…
Accumulated Depreciation
Accumulated depreciation is the total depreciation expense recorded on an asset since its purchase. It reduces the asset's book value…
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