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What is a quick ratio used to measure?
  • a)
    The profitability of a business.
  • b)
    The relationship between short-term assets and current liabilities.
  • c)
    The total liabilities of a business.
  • d)
    The total assets of a business.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is a quick ratio used to measure?a)The profitability of a busines...
A quick ratio measures the relationship between short-term liquid assets (those that can be quickly converted to cash, such as cash and receivables) and current liabilities.
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What is a quick ratio used to measure?a)The profitability of a business.b)The relationship between short-term assets and current liabilities.c)The total liabilities of a business.d)The total assets of a business.Correct answer is option 'B'. Can you explain this answer?
Question Description
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