Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:
Quick Ratio is also known as :
Options:
Liquid Ratio
Current Ratio
Working Capital Ratio
None of the Above
Correct Answer:
Liquid Ratio
Explanation:
The Quick Ratio, also known as the Acid-test or Liquidity ratio, measures the ability of a business to pay its short-term liabilities by having assets that are readily convertible into cash.