CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

The quick ratio ______

I. is a measure of short-term debt-paying ability.
II. calculation includes inventory.
III. is used to evaluate profitability.
Correct Answer: I only

The quick ratio is used to evaluate liquidity. Only current assets that can be quickly converted to cash are included in the quick ratio, so inventory is not included in the calculation.

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