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Financial Terms | |
ABC Test |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of ABC TestABC TestA test used to determine the status of an employee under a state unemployment
Related Terms:ABCsee activity-based costing ABC inventory classificationA method for dividing inventory into classifications, Acid-test ratioAlso called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid ACID-TEST RATIOA ratio that shows how well a company could pay its current debts using only its most liquid or “quick” assets. It’s a more pessimistic—but also realistic—measure of safety than the current ratio, because it ignores sluggish, hard-toliquidate current assets like inventory and notes receivable. Here’s the formula: Acid-test RatioSee quick ratio acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable activity based costing (ABC)A relatively new method advocated for the ![]() activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns Asset-coverage testA bond indenture restriction that permits additional borrowing on if the ratio of assets to attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute Best-interests-of-creditors testThe requirement that a claim holder voting against a plan of reorganization Fair-and-equitable testA set of requirements for a plan of reorganization to be approved by the bankruptcy court. Incontestable ClauseThis clause in regular life insurance policy provides for voiding the contract of insurance for up to two years from the date of issue of the coverage if the life insured has failed to disclose important information or if there has been a misrepresentation of a material fact which would have prevented the coverage from being issued in the first place. After the end of two years from issue, a misrepresentation of smoking habits or age can still void or change the policy. Interest coverage testA debt limitation that prohibits the issuance of additional long-term debt if the issuer's IntestateThis means dying without a will, in which case the provincial laws of the province in which the death occurred apply to the manner in which assets will be distributed. In other words, if you don't write your own will, the government will do it for you after your death and it may not be as you would have wished. ![]() Proxy contestA battle for the control of a firm in which the dissident group seeks, from the firm's other proxy contestTakeover attempt in which outsiders compete with management for shareholders’ votes. Also called proxy fight. Tick-test rulesSEC-imposed restrictions on when a short sale may be executed, intended to prevent investors Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |