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Other Fields Homework Help Business Topic started by: solina on May 30, 2017



Title: Why is the quick ratio a more refined measure of liquidity than the current ratio?
Post by: solina on May 30, 2017
Why is the quick ratio a more refined measure of liquidity than the current ratio?
A) It measures how quickly cash and other liquid assets flow through the company.
B) Inventories are omitted from the numerator of the ratio because they are generally the least liquid of the firm's current assets.
C) It is a quicker calculation to make.
D) Cash is the most liquid current asset.


Title: Re: Why is the quick ratio a more refined measure of liquidity than the current ratio?
Post by: Lutional on May 30, 2017
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Title: Re: Why is the quick ratio a more refined measure of liquidity than the current ratio?
Post by: solina on Jun 26, 2017
Simple and easy, thank u