CFA Practice Question

There are 534 practice questions for this study session.

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.
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