The ratio, sometimes called the "acid test," is a more stringent measure of than the current ratio.
A)quick;liquidity
B)fixed-asset turnover;activity
C)net profit margin;gross profit margin
D)equity, activity

Question

Quizplus · Accepted Answer

The acid test ratio, also known as the quick ratio, is a more conservative measure of liquidity compared to the current ratio. It excludes inventory from the assets used in the calculation, reflecting a company's ability to pay off short-term liabilities with its most liquid assets. The other options listed here are all different financial ratios that measure different aspects of a company's performance.

The Ratio, Sometimes Called the "Acid Test," Is a More