The higher the quick ratio, the lower the business's ability to pay its current liabilities.

Name: The higher the quick ratio, the lower the business's ability to pay its current liabilities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The quick ratio measures a business's ability to pay its current liabilities with its most liquid assets. A higher quick ratio indicates a stronger ability to meet short-term obligations, while a lower quick ratio indicates a weaker ability. Therefore, the statement is false.

The Higher the Quick Ratio, the Lower the Business's Ability