Quick Assets Divided by Current Liabilities Is The

question 102

Multiple Choice

Quick assets divided by current liabilities is the:

• A) Acid-test ratio.
• B) Current ratio.
• C) Working capital ratio.
• D) Current liability turnover ratio.
• E) Quick asset turnover ratio.

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Definitions:

Services

Intangible products offered to consumers and other businesses, such as banking, education, and healthcare, which unlike goods, are not physical objects.

Autonomous Consumption

The level of consumption expenditure that occurs when income is zero, reflecting the basic level of consumption necessary for survival.

Wealth Effect

The change in spending that accompanies a change in perceived wealth, usually referring to the increase in consumer spending following an increase in asset values.

Consumption

The use of goods and services by households, constituting one of the primary components of aggregate demand in an economy.