Which of the following ratios are measures of a firm's liquidity? I. cash coverage ratio II. current ratio III. debt-equity ratio IV. quick ratio

Respuesta :

Answer: Quick ratio.

Explanation:

The quick ratio(QR) also known as the acid test ratio, is a measure of the assets a business posseses that can quickly be converted to cash to settle current liabilities/costs.

The formula for QR is:

QR = (cash/equivalent+marketable securities+accounts receivable) ÷ current liabilities

ACCESS MORE
EDU ACCESS