A firm's quick and current ratios are both measures of long-term debt levels.

Question

Quizplus · Accepted Answer

The quick and current ratios are measures of a firm's short-term liquidity and ability to meet its current obligations. They take into account a company's current assets (such as cash, accounts receivable, and inventory) and current liabilities (such as accounts payable and short-term debt). Long-term debt levels are typically measured using metrics such as the debt-to-equity ratio or interest coverage ratio.

A Firm's Quick and Current Ratios Are Both Measures of Long-Term