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Q.

____________ ratio measures the ability of a company to meet its short-term obligations.

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a

Debt-to-equity

b

Current

c

Quick

d

Gross profit

answer is C.

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Detailed Solution

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets and therefore excludes inventories from its current assets. It is also known as the "acid-test ratio."

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