Accountancy, asked by mkpilla67, 17 days ago

why quick ratio is more reliable than the current ratio as an indicator of liquidity​

Answers

Answered by sainathfulmanthe
1

Answer:

The quick ratio also measures the liquidity of a company by measuring how well its current assets could cover its current liabilities. However, the quick ratio is a more conservative measure of liquidity because it doesn't include all of the items used in the current ratio.

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Answered by khushidas93
2

Answer:

The quick ratio also measures the liquidity of a company by measuring how well its current assets could cover its current liabilities. However, the quick ratio is a more conservative measure of liquidity because it doesn't include all of the items used in the current ratio.

Explanation:

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