Choose the Correct Explanation for the Liquidity (Quick)ratio

question 6

Multiple Choice

Choose the correct explanation for the liquidity (quick) ratio.

• A)A measure of a business's ability to pay debts and obligations due beyond 1 year
• B)A measure of a business's ability to pay debts and obligations due within 2 years
• C)A measure of a business's ability to pay debts and obligations due within 1 year
• D)A measure of a business's ability to pay debts and obligations due within 1 year,excluding the value of inventory and prepaid expenses

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Definitions:

IQ Score

A numerical measure of a person's intelligence relative to that of others, based on the results of standardized tests.

Distribution

The process of giving or delivering something to a number of people or places, or how a set of items is spread or dispersed over a range of values or areas.

IQ Score

A measure of a person's cognitive abilities and potential, based on performance on standardized tests, often used as an indicator of intellectual capability.

Distribution

The manner in which a set of data or items is spread or dispersed across a range of values or areas.