Current Ratio is the proportion of current assets to current liabilities, expressed as Current Ratio = Current Assets / Current Liabilities. Current assets include inventories, trade receivables, cash and cash equivalents, and other current assets such as prepaid expenses and advance tax.

Quick Ratio (or Liquid Ratio) is the ratio of quick assets to current liabilities, expressed as Quick Ratio = Quick Assets / Current Liabilities. Quick assets are defined as those assets which are quickly convertible into cash. While calculating quick assets, we exclude inventories and other current assets such as prepaid expenses and advance tax from current assets.

The quick ratio is considered better than current ratio as a measure of liquidity position of the business because of the exclusion of non-liquid current assets. It is calculated to serve as a supplementary check on liquidity position and is therefore also known as 'Acid-Test Ratio'.

When inventory cannot easily be converted into cash, the current ratio would overstate liquidity by including this non-liquid asset. In such cases, the quick ratio is a better measure as it excludes non-liquid inventory. Conversely, when inventory is liquid, the current ratio provides a reasonable measure since inventory can be readily converted to cash.

Thus, the relationship stated in the question appears reversed. The quick ratio is preferred when inventory is non-liquid, while the current ratio may be acceptable when inventory is liquid.