CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

The main difference between the current ratio and the quick ratio is that the quick ratio excludes ______.
A. inventory
B. sales
C. assets
Explanation: Current ratio = current assets/current liabilities = [cash + marketable securities + receivables + inventory]/ current liabilities
Quick ratio = [cash + marketable securities + receivables]/current liabilities

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