The quick ratio: is calculated by dividing the sum of the firm's current assets, excluding inventory, by
Fantastic news! We've Found the answer you've been seeking!
Question:
The quick ratio:
is calculated by dividing the sum of the firm's current assets, excluding inventory, by the total amount of its current liabilities.
shows how many times quick assets, which are quickly convertible to cash, can cover current obligations.
is a stricter measure of liquidity than the current ratio.
All of the above
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
Posted Date: