The quick ratio is:
A. The liquidity ratio divided by the equity ratio.
B. Current assets minus inventory divided by current liabilities minus accounts payable.
C. Current assets minus inventory and prepaid items divided by current liabilities.
D. Cash divided by accounts payable.
Answer:C
The quick ratio is:
A. The liquidity ratio divided by the equity ratio. B. Current assets minus inventory divided by current liabilities minus accounts payable. C. Current assets minus inventory and prepaid items divided by current liabilities. D. Cash divided by accounts payable.