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Invoice Factoring Glossary by Alpha
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Quantity Discounts
Price reductions experienced as a result of purchasing in larger volume.
Quick Test Ratio
The Quick Test Ratio (also called the Acid Test or Liquidity Ratio) is the most excessive and difficult test of a company's financial strength and liquidity. The quick test ratio is calculated by taking current assets less inventory (current assets minus inventory is often referred to as the "quick assets"), and dividing the result by the current liabilities.
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