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Questions and Answers

Which ratio is also known as the acid test ratio?

Current Ratio

Working Capital Ratio

Liquidity Ratio

Quick Ratio (correct)

Which ratio compares a company's current assets to its current liabilities?

Working Capital Ratio

Liquidity Ratio

Current Ratio (correct)

Quick Ratio

Which assets are included in the quick ratio calculation?

All current assets

Fixed assets

Cash, marketable securities, and receivables (correct)

Inventory and prepayments

What does the quick ratio exclude from the calculation?

<p>Inventory and prepayments</p> Signup and view all the answers

How is the quick ratio different from the current ratio?

<p>The quick ratio excludes inventory and prepayments</p> Signup and view all the answers

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Questions and Answers

Which ratio is also known as the acid test ratio?

Which ratio compares a company's current assets to its current liabilities?

Which assets are included in the quick ratio calculation?

What does the quick ratio exclude from the calculation?

How is the quick ratio different from the current ratio?

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