The quick ratio is an example of which type of ratio?
A) solvency ratio
B) profitability ratio
C) liquidity ratio
D) activity ratio

Question

Quizplus · Accepted Answer

The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to pay its short-term liabilities with its most liquid assets. Therefore, the correct choice is C, as it reflects the company's short-term liquidity position.

The Quick Ratio Is an Example of Which Type of Ratio