Why is Quick Ratio deemed a better measure than the two other measures? Explain:
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
Problem 6DQ
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Why is Quick Ratio deemed a better measure than the two other measures? Explain:
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Quick ratio is used for measuring the short term liquidity position of the company and forms a part of 3 liquidity ratios. The other two liquidity ratios are current and cash ratio.
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