Which of the following ratios is used to measure a firm's short-term liquidity?
A) accounts receivable turnover ratio
B) inventory turnover ratio
C) quick ratio
D) debt-to-equity ratio
E) equity-to-debt ratio

Question

Quizplus · Accepted Answer

A)Quick ratio is a measure of a firm's short-term liquidity. It is calculated by adding cash, marketable securities, and receivables, then dividing that sum by current liabilities.
B)Quick ratio is a measure of a firm's short-term liquidity. It is calculated by adding cash, marketable securities, and receivables, then dividing that sum by current liabilities.
C)Quick ratio is a measure of a firm's short-term liquidity. It is calculated by adding cash, marketable securities, and receivables, then dividing that sum by current liabilities.
D)Quick ratio is a measure of a firm's short-term liquidity. It is calculated by adding cash, marketable securities, and receivables, then dividing that sum by current liabilities.
E)Quick ratio is a measure of a firm's short-term liquidity. It is calculated by adding cash, marketable securities, and receivables, then dividing that sum by current liabilities.

Which of the Following Ratios Is Used to Measure a Firm's