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MATCHING -Top of the File Hierarchy

question 77

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MATCHING
-top of the file hierarchy


Definitions:

Acid Test Ratio

A liquidity ratio; those assets that are most easily converted to cash are divided by current liabilities to indicate ability to pay off short-term debt. Also called quick ratio.

Quick Assets

Assets that can be quickly converted into cash without significantly affecting their value, such as stocks and receivables.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid within a year, including accounts payable, short-term loans, and accrued expenses.

Debt to Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

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