CFA Practice Question

There are 1201 practice questions for this topic.

CFA Practice Question

The quick ratio is also called the ______.

A. current ratio
B. acid-test ratio
C. cash-flow liquidity ratio
Correct Answer: B

The quick ratio is also called the acid-test ratio because it provides a more rigorous test of short-term liquidity than does the current ratio.

User Contributed Comments 1

User Comment
microeconomist To gauge short-term liquidity, the Quick Ratio excludes inventory.
You need to log in first to add your comment.