The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets.

Name: The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets.
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

The acid-test ratio, also known as the quick ratio, measures a company's ability to pay its current liabilities without relying on the sale of inventory, by subtracting inventory from current assets.

The _____ Ratio Is a Measure of the Firm's Ability