Also called acid test ratio or quick ratio, it is a corporations current assets minus inventories divided by current liabilities. By excluding inventory from the formula, the ratio focuses on a ...

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Publicly traded corporations are required to publish quarterly balance sheets that allow shareholders to compare a company’s assets with its liabilities. It’s also a good practice for private ...

These are examples of assets not normally easily disposed of. Key Takeaway: Formally, if an asset isn't expected to be cashable within a year, it isn’t considered a current asset. In business, a ...