The quick ratio is a more stringent measure of solvency than the current ratio.

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Quizplus · Accepted Answer

The quick ratio (also known as acid test ratio) is a more stringent measure of solvency than the current ratio. This is because, while the current ratio considers all current assets, the quick ratio only considers the most liquid assets that can be quickly converted into cash to meet short-term obligations. Therefore, the quick ratio provides a more conservative estimate of a company's ability to pay its current liabilities.

The Quick Ratio Is a More Stringent Measure of Solvency