What are the two most common measures of liquidity?

Question

Quizplus · Accepted Answer

The current ratio and quick ratio are the two most common measures of liquidity. The current ratio measures the ability of a company to pay off its current liabilities using its current assets, while the quick ratio measures the ability of a company to pay off its current liabilities using its most liquid assets (cash, marketable securities, and accounts receivable). These ratios are widely used by investors, creditors, and analysts to assess a company's ability to meet its short-term financial obligations.

What Are the Two Most Common Measures of Liquidity