Which of the following statements is true regarding the analysis of current liabilities?

Select one:

a.

The acid-test (or quick) ratio is a more conservative measure of liquidity than the current ratio.

b.

The current ratio is a more conservative measure of liquidity than the acid-test (or quick) ratio.

c.

The acid-test (or quick) ratio is calculated in the same way as the current ratio.

d.

None of the other answer choices are correct.