Which of the following ratios is used to measure a company's liquidity?

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Multiple choice — select the best answer

AReturn on assets
BDebt-to-equity ratio
CQuick ratio
DGross profit margin

✓ Correct answer: C. Quick ratio The quick ratio (acid-test ratio) measures a company's ability to meet short-term obligations using its most liquid assets, making it a liquidity ratio.

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Which of the following ratios is used to measure a company's liquidity?

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