The most severe measure of a retailer's liquidity is the _____.

Question

Quizplus · Accepted Answer

The quick ratio measures a retailer's ability to pay its short-term liabilities using its most liquid assets. It therefore provides an indication of a retailer's ability to quickly meet its short-term obligations. A low quick ratio is a sign of poor liquidity, as it suggests that the retailer may struggle to pay its debts in the short term. Therefore, the quick ratio is the most severe measure of a retailer's liquidity.

The Most Severe Measure of a Retailer's Liquidity Is the _____