The quick ratio is also known as the
A) key profitability ratio.
B) EPS.
C) acid test.
D) asset turnover.
E) key activity ratio.

Question

Quizplus · Accepted Answer

The quick ratio is sometimes referred to as the acid test because it measures a company's ability to meet short-term liabilities using only its most liquid assets (i.e. cash and near-cash items). It is not a profitability, earnings per share, asset turnover, or activity ratio.

The Quick Ratio Is Also Known as the