The quick ratio and the number of days' sales in receivables measure:

Question

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The quick ratio and the number of days' sales in receivables both measure a company's liquidity, which refers to its ability to meet its short-term obligations. The quick ratio focuses specifically on a company's ability to pay its current liabilities using its most liquid assets, while the number of days' sales in receivables measures how long it takes a company to collect payment for its sales. Neither of these metrics directly relate to a company's ability to pay its long-term debts or its profitability.

The Quick Ratio and the Number of Days' Sales in Receivables