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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Australian Accounting Standards Board (AASB)
The statutory body responsible for developing and maintaining accounting standards in Australia. AASB standards are largely aligned with IFRS but include additional requirements for not-for-profit and…
Accounts Payable Aging
A report that categorizes outstanding vendor invoices by due date ranges (e.g. 0–30, 31–60 days), used to manage cash flow…
Active Income
Allocation is the process of distributing costs, revenues, or expenses to different accounts, departments, or projects based on predefined criteria.…
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