Which of the following ratios is considered to be a more stringent measure of a company's ability to pay its current liabilities than the current ratio?

Question

Quizplus · Accepted Answer

The quick ratio, also known as the acid-test ratio, excludes inventory from current assets, making it a more stringent measure of a company's ability to pay its current liabilities compared to the current ratio.

Which of the Following Ratios Is Considered to Be a More