Match each of the ratios named with the proper formula for computation.
-(Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
A)Current Ratio
B)Quick Ratio
C)Cash Ratio
D)Operating Cash Flow Ratio

Question

Quizplus · Accepted Answer

The formula for the Quick Ratio is (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities. This ratio is also known as the Acid-Test Ratio and measures a company's ability to pay off its short-term liabilities without relying on inventory.

Match Each of the Ratios Named with the Proper Formula