Question: Analysts use the quick ratio ( also known as the acid test ratio ) and the current ratio. The use of both ratios has become
Analysts use the quick ratio also known as the acid test ratio and the current ratio. The use of both ratios has become common because
the quick ratio is much easier to compute than the current ratio.
the acid test is a more severe test of a company's liquidity
interpretation of the current ratio is more difficult because of its complexity.
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