Cross Watson
01/04/2024 · Senior High School

A higher Quick Ratio indicates a better ability to cover short-term obligations. True False

UpStudy ThothAI Solution

Tutor-Verified Answer

Step-by-step Solution

True. A higher Quick Ratio indicates a better ability for a company to cover its short-term obligations with its most liquid assets, excluding inventory. This ratio is a measure of a company's short-term liquidity and financial health.

Quick Answer

True. A higher Quick Ratio shows better short-term financial health.
Answered by UpStudy AI and reviewed by a Professional Tutor
UpStudy ThothAI
Self-Developed and Ever-Improving
Thoth AI product is constantly being upgraded and optimized.
Covers All Major Subjects
Capable of handling homework in math, chemistry, biology, physics, and more.
Instant and Accurate
Provides immediate and precise solutions and guidance.
Try Now
Ask Tutors
Ask AI
10x
Fastest way to Get Answers & Solutions
By text

Enter your question here…

By image
Re-Upload
Uploaded Files
xxxx.png0%
Submit
📸 STUDY CAN BE A REAL STRUGGLE
Why Not UpStudy It?
Select your plan below
Premium

You can enjoy

  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to answer and
    solution
Basic
  • Limited Solutions