Which of the following ratios uses the smallest dollar value of assets?
A)Current ratio
B)Working capital
C)Quick ratio
D)Debt ratio

Question

Quizplus · Accepted Answer

The quick ratio only considers the most liquid assets, such as cash and accounts receivable, and excludes inventory and prepaid expenses. Therefore, it usually results in a smaller dollar value of assets compared to other ratios such as the current ratio, which includes all current assets.

Which of the Following Ratios Uses the Smallest Dollar Value