Which of the following ratios is a measure of the company's ability to pay its current liabilities once inventory is subtracted from current assets?

Question

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The acid-test ratio, also known as the quick ratio, is a measure of a company's ability to pay its current liabilities with its most liquid assets (cash, marketable securities, and accounts receivable) once inventory is subtracted from current assets. It helps to evaluate a company's short-term liquidity position.

Which of the Following Ratios Is a Measure of the Company's