The quick ratio is similar to the current ratio because it is also used to evaluate the ability to pay current liabilities.

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The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to pay its current liabilities using its most liquid assets. This is similar to the current ratio, which evaluates a company's ability to meet current obligations using its current assets. Both ratios are used to assess a company's short-term liquidity.

The Quick Ratio Is Similar to the Current Ratio Because