Quick Ratio in Accounting: Definition, Formula & Example


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question 1 of 3

What is a quick ratio?

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1. What is another name for a quick ratio?

2. What is the formula to calculate a quick ratio?

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About This Quiz & Worksheet

This quiz/worksheet combo will test your understanding of the quick ratio in accounting. Be prepared to answer questions about what the quick ratio is, how it is calculatated, and who would need to know this information.

Quiz & Worksheet Goals

Use these resources to answer questions related to:

  • The definition of quick ratio
  • Alternate term for quick ratio
  • Formula to calculate the ratio
  • Significance of a ratio over 1.0
  • Who would be interested in a company's quick ratio

Skills Practiced

Students will use these skills:

  • Interpreting information - verify you can read information regarding the significance of a ratio over 1.0 and interpret it correctly
  • Knowledge application - use your knowledge to identify the correct formula used to calculate the ratio
  • Reading comprehension - ensure that you draw the most important information from the related business lesson

Additional Learning

You can find out more by watching the lesson titled Quick Ratio in Accounting: Definition, Formula & Example. This lesson will help you:

  • Describe how to apply the acid test to a company
  • Identify what makes for a stronger company
  • Explain how to calculate the quick ratio
  • Appreciate the reasons behind using a quick ratio