Question
Why is the quick ratio considered by some to be a better measure of liquidity than the current ratio? a. The quick ratio more accurately
Why is the quick ratio considered by some to be a better measure of liquidity than the current ratio?
| a. The quick ratio more accurately reflects a firm's profitability. |
| b. The quick ratio omits the least liquid current asset from the numerator of the ratio. |
| c.The current ratio does not include accounts receivable. |
| d. The quick ratio measures how "quickly" cash flows through the firm. |
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
