The Quick Ratio Improves Upon The Current Ratio By What?
The Quick Ratio improves upon the current ratio by recognizing that Inventory or Stock is least Liquid Asset as it eliminates closing inventory and prepaid expenses to make sure that all of the remaining Assets are more close to convert into cash very easily and quickly. The purpose of quick ratio is to show most liquid assets such as Cash and Cash Equivalents + Accounts / Receivable that meet current obligations of the business easily on daily basis.