A(n)________ calculation helps managers assess a firm's ability to meet payments to short-term creditors without impacting inventory levels.
A)quick ratio
B)current ratio
C)days sales outstanding ratio
D)inventory turnover ratio
E)profit ratio

Question

Quizplus · Accepted Answer

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

A(n)________ Calculation Helps Managers Assess a Firm's Ability to Meet