What is the difference between the current ratio and the quick ratio? | Faculties

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Vijay Sangwan

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📊 Financial Management

Q. What is the difference between the current ratio and the quick ratio?

(A) The current ratio includes inventories and the quick ratio does not.
(B) The current ratio does not include inventories and the quick ratio does.
(C) The current ratio includes physical capital and the quick ratio does not.
(D) The current ratio does not include physical capital and the quick ratio does.

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✅ Correct Answer: (A) The current ratio includes inventories and the quick ratio does not.

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