Ratios: Quick (Acid Test) Ratio Video Lessons

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Problem: Which of the following is true about the quick ratio? a. It is a liquidity ratio. b. It cannot exceed the current ratio. c. It is also called the acid-test ratio. d. It measures the ability of the firm to pay off its short-term obligations without relying on inventory. e. All of the above answers are correct.

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Which of the following is true about the quick ratio?

a. It is a liquidity ratio.

b. It cannot exceed the current ratio.

c. It is also called the acid-test ratio.

d. It measures the ability of the firm to pay off its short-term obligations without relying on inventory.

e. All of the above answers are correct.

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