📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      Which ratio measures a company’s ability to meet

      short-term obligations excluding inventory?
      A Current ratio Correct Answer Incorrect Answer
      B Debt-equity ratio Correct Answer Incorrect Answer
      C Quick (acid-test) ratio Correct Answer Incorrect Answer
      D Return on capital employed Correct Answer Incorrect Answer
      E Inventory turnover ratio Correct Answer Incorrect Answer

      Solution

      Quick ratio = (Current assets − Inventory)/Current liabilities; excludes inventory.

      Practice Next
      ask-question