The CEO of a company would like to know whether his managers can pay off claims of short-term creditors without selling inventory. What ratio will help him understand the company's liquidity?
A)inventory turnover ratio
B)quick ratio
C)current ratio
D)debt-to-assets ratio

Question

Quizplus · Accepted Answer

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

The CEO of a Company Would Like to Know Whether