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Home > QFINANCE Dictionary > Definition of acid test

Definition of

acid test

  • 1. Accounting

    test of organization's liquidity a test used to measure an organization's liquidity.

    Related definitions of "acid test"

  • 2. General Management

    decisive test a stringent test of the worth or reliability of something

Recommended Further Reading (Term count)
  • Acid-Test Ratio
    How quickly a company’s assets can be turned into cash, which is why assessment of a company’s liquidity is also known as the quick ratio, or simply the acid ratio.
  • Toward a Total Global Strategy
    by George Yip
    In the 1980s and the 1990s, many companies were still debating whether they should globalize. For most, this debate has now ended. Companies assume that they should globalize unless they can find very good reasons not to.The spread of the internet and the Web provides one compelling reason. Any company that creates a website has instant global reach, with corresponding demands for delivery and service. In addition, evidence shows that companies...

Definitions of ’acid test’ and meaning of ’acid test’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’acid test’ and other financial terms with our online QFINANCE Financial Dictionary.

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