What is the main difference between the quick ratio and the current ratio?

• A. The quick ratio excludes inventory and prepaid expenses, focusing only on the most liquid assets.
• B. The quick ratio assesses long-term solvency rather than short-term liquidity.
• C. The quick ratio includes all current assets, providing a broader view of liquidity.
• D. The quick ratio measures profitability rather than liquidity.

Answer: (A)