ACID-TEST RATIO Definition

ACID-TEST RATIO is an analysis method used to measure the liquidity of a business by dividing total liquid assets by current liabilities.

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MALPRACTICE INSURANCE see E&O INSURANCE.

DEPRECIATION AND AMORTIZATION is the standard line item in an income statement that sums: Depreciation, the non-cash expense of a tangible investment over time and Amortization, the non-cash expenses of an intangible investment over time.

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