Quiz Ch 04 – T/F Current and Quick Ratios: Assessing Liquidity Measures
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: Both the current and quick ratios gauge a company’s liquidity. The current ratio evaluates the correlation between a firm’s present assets and its current debts, while the quick ratio appraises the company’s capacity to settle short-term liabilities without depending on inventory sales.