Match these terms to their correct definition.
-An even more conservative short-term liquidity ratio than the quick ratio.
A)Accounts receivable turnover ratio
B)Cash ratio
C)Gross profit percentage
D)Inventory turnover ratio
E)Net profit margin percentage
F)Operating margin percentage
G)Quick ratio
H)Total payout ratio

Question

Quizplus · Accepted Answer

The cash ratio is an even more conservative liquidity measure than the quick ratio because it only considers cash and cash equivalents as assets that can be used to cover liabilities, excluding receivables and inventory which are included in the quick ratio.

Match These Terms to Their Correct Definition