Why Do Banks Look at the Quick Ratio in Addition

question 85

Multiple Choice

Why do banks look at the quick ratio in addition to the current ratio?

• A)The quick ratio assets are larger than the current ratio assets.
• B)The quick ratio is a better measure of how quickly liabilities are coming due.
• C)The quick ratio is easier to calculate.
• D)The quick ratio uses only the most liquid assets while the current ratio uses all current assets.

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