The current ratio will be ________ the quick ratio.
A)Less than
B)Greater than or equal to
C)The same as
D)Always different than

Question

Quizplus · Accepted Answer

The current ratio includes all current assets (including inventory) in its calculation, while the quick ratio excludes inventory. Since inventory is a current asset, the current ratio will always be greater than or equal to the quick ratio, as it potentially includes more assets in its calculation.

The Current Ratio Will Be ________ the Quick Ratio