The acid-test ratio,or quick ratio,is similar to the current ratio but is based on a more conservative measure of current assets available to pay current liabilities.

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The statement accurately describes the acid-test ratio, which is a more conservative liquidity ratio than the current ratio as it only considers the most liquid current assets (cash, marketable securities, and accounts receivable) to pay off current liabilities.

The Acid-Test Ratio,or Quick Ratio,is Similar to the Current Ratio