Quick Ratio is also known as_______________?
A. Current Ratio
B. Acid-test Ratio
C. Cash Ratio
D. Solvency Ratio
B. Acid-test Ratio
C. Cash Ratio
D. Solvency Ratio
Details:
Acid-test ratio (also known as quick ratio) is a measure of a company's liquidity, which is its ability to pay its short-term obligations using only its most liquid assets. It is calculated by dividing the sum of a company's cash, cash equivalents and marketable securities by its total current liabilities.