The ratio of the sum of cash,receivables,and marketable securities to current liabilities is called the

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Quizplus · Accepted Answer

The quick ratio also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations using its most liquid assets like cash, accounts receivable, or marketable securities. It is calculated by dividing the sum of these assets by the current liabilities. Therefore, the correct answer is C. The price-earnings ratio and earnings ratio are not related to liquidity, while the current ratio includes inventory which may not be as liquid as the assets in the quick ratio calculation.

The Ratio of the Sum of Cash,receivables,and Marketable Securities to Current