A bank wants to know whether a customer can raise cash in a timely fashion at a reasonable cost.They are most likely to look at which of the following ratios?

Question

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The ratio (Current assets - Inventory)/Current liabilities, also known as the quick ratio, is a measure of a company's ability to pay off its short-term obligations without relying on the sale of inventory. This is a good measure of a customer's ability to raise cash quickly, as it looks at their current assets excluding inventory, which may not be easily sold.

A Bank Wants to Know Whether a Customer Can Raise