The ratio of the sum of cash and other current assets that can be easily converted to cash to current liabilities is called as:

Question

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The ratio of the sum of cash and other current assets that can be easily converted to cash to current liabilities is called the quick ratio. This ratio measures a company's ability to meet its short-term obligations with its most liquid assets. The quick ratio is also known as the acid-test ratio.

The Ratio of the Sum of Cash and Other Current