Current assets less stocks (inventories) i.e. mainly bank balances. debtors and readily realizable investments. They are also referred to as liquid assets.
The relationship between quick assets and current liabilities. Also known as the acid test. or liquid ratio. it is widely regarded as the most useful single test of liquidity. It differs from the current ratio in the exclusion of stocks (inventories). which may not be readily realizable and which may be valued in different ways by different companies.