The Quick Ratio Differs from the Current Ratio in the Following

The quick ratio differs from the current ratio in the following way:

A) The current ratio is a more conservative estimate of liquidity compared to the quick ratio
B) The quick ratio excludes both notes payable and bank loans, while the current ratio excludes only notes payable
C) The quick ratio excludes inventory and prepaid expenses while the current ratio includes all current assets
D) The quick ratio is generally higher than a firm's current ratio