The _____,an evaluation of liquidity,measures how well an organization can meet its current obligations without resorting to the sale of its inventory.
A)debt utilization ratio
B)quick ratio
C)asset utilization ratio
D)receivables turnover ratio
E)current ratio

Question

Quizplus · Accepted Answer

The quick ratio, also known as the acid-test ratio, specifically measures an organization's ability to meet its short-term obligations with its most liquid assets, excluding inventory. This makes it a key indicator of liquidity without relying on the sale of inventory.

The _____,An Evaluation of Liquidity,measures How Well an Organization Can