Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-(Cash + Temporary investments + Accounts receivable)/Current liabilities
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Question

Quizplus · Accepted Answer

The formula given represents the Quick Ratio, which measures a company's ability to meet its short-term obligations with its most liquid assets.

Match Each of the Following Items with the Term or Phrase