Option D is correct. According to the provided context under Section 5.6.2 'Quick or Liquid Ratio', the ratio is calculated using quick assets. The text explicitly states that while calculating quick assets, 'we exclude the inventories at the end and other current assets such as prepaid expenses, advance tax, etc., from the current assets.' Since inventory is generally considered the least liquid asset, the liquid ratio excludes it to measure short-term solvency more accurately than the current ratio.