In accounting, the acid-test ratio, or quick ratio, is one way to measure a company's liquidity, or how well equipped it is to pay off debts in cash.

The quick ratio, Q, is calculated using the formula Q = [tex]\frac{C-I-P}{L}[/tex]
where C is is the value of the company's current assets, I is inventory, P is prepaid expenses, and L is current liabilities.