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, qqq, is calculated using the formula q = \dfrac{ca-i - p}{cl}q=
cl
ca−i−p

q, equals, start fraction, c, a, minus, i, minus, p, divided by, c, l, end fraction, where cacac, a is the value of the company's current assets, iii is inventory, ppp is prepaid expenses, and clclc, l is current liabilities.
rearrange the formula to solve for current assets (ca)(ca)left parenthesis, c, a, right parenthesis.