Another name for the quick ratio is
A) quick cash ratio
B) current ratio
C) working capital ratio
D) acid-test ratio

Name: Another name for the quick ratio is A) quick cash ratio B) current ratio C) working capital ratio D) acid-test ratio
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Question

Quizplus · Accepted Answer

The quick ratio is also commonly known as the acid-test ratio because it measures a company's ability to pay off its short-term liabilities without relying on the sale of inventory. It is calculated as (Current Assets - Inventory) / Current Liabilities.

Another Name for the Quick Ratio Is