The Quick Ratio

Multiple Choice

The quick ratio:

A) Indicates the ability of a firm to meet its current obligations without disposing of any inventory.
B) Depicts the ability of a firm to pay off its long-term debts in a timely manner.
C) Compares the current cash holdings of a firm to the current liabilities.
D) Measures a firm's ability to generate cash from its operations.
E) Indicates how quickly a firm can liquidate its inventory.