The financial ratio that indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory is the ________ ratio.
A)quick
B)current
C)days sales outstanding
D)profit

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 Financial Ratio That Indicates Whether or Not the Organization