Dictionary of...Accounting Terms
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qualitative characteristics
- In accounting the qualitative characteristics include relevance, reliability, comparability, and consistency. Qualitative characteristics are discussed in the Financial Accounting Standards Board's Statement of Financial Accounting Concepts No. 2.
quality of earnings
- Earnings are said to be of a high quality if the accounting policies are conservative. One indication is that the cash flows from operating activities shown on the statement of cash flows consistently exceed the amount of net income shown on the income statement.
quick assets
- Assets such as Cash, Temporary Investments, and Accounts Receivable.
quick ratio
- Also known as the acid test ratio. This ratio compares the amount of cash + marketable securities + accounts receivable to the amount of current liabilities. To learn more, see Explanation of Financial Ratios.
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