Question: Why is the quick ratio considered by some to be a better measure of liquidity than the current ratio? The quick ratio more accurately reflects
Why is the quick ratio considered by some to be a better measure of liquidity than the current ratio?
The quick ratio more accurately reflects a firm's profitability.
It removes the least liquid current asset inventory from the numerator of the ratio.
The current ratio does not include accounts receivable.
Itmeasures how "quickly" cash flows through the firm.
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