Financial Terms “Q”


Financial Terms Dictionary

Q


Quarterly Report

A quarterly report is a financial statement that covers three months or a quarter of the year. Quarterly reports are unaudited and are also called interim reports. Reports that cover a full year are called annual reports.


Quick Ratio

The quick ratio is one of the liquidity ratios. It measures the dollars of “quick assets” for each dollar of current liabilities. The “quick assets” are cash, receivables, and marketable securities. Both assets and liabilities are shown on a company’s balance sheet. Quick ratio equals the total of cash, receivables, and marketable securities divided by the total current liabilities.

The quick ratio is also called the acid-test ratio.

quick ratio formula

Assume a company has cash of $15,000, receivables of $45,000, and marketable securities of $10,000. The company has current liabilities of $100,000. The quick ratio is $70,000 / $100,000 = 0.70.

quick ratio example

Jeff Mankin

Jeff Mankin teaches financial literacy. His website is FinallyLearn.com.

Recent Posts

link to Expense

Expense

What is an expense? Expense is a cost to operate a business to produce revenue. In accounting, an expense occurs when an asset is used. This could include a cash outflow or consuming an...