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Research has established that
Acid-Test Ratio
A stringent test that measures a company's ability to pay off its short-term liabilities with quick assets, excluding inventory.
Accounts Receivable Turnover
A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.
Acid-Test Ratio
A financial metric that measures a company's ability to pay off its current liabilities with its most liquid assets, excluding inventory.
Current Liabilities
Short-term financial obligations that are due within one year or within a company's operating cycle, whichever is longer.
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