Which of the Following Is Not True Regarding the Quick

question 133

Multiple Choice

Which of the following is not true regarding the quick ratio?

• A)If a company has more current assets than liquid assets,the current ratio will be larger than the quick ratio.
• B)A high quick ratio suggests a high ability to pay current liabilities.
• C)Liquid assets include cash and cash equivalents,short-term investments,and net accounts receivable.
• D)A quick ratio greater than 1 implies a company could not pay all of its current liabilities.

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Definitions:

Challenge

A task or situation that requires a person to use some effort, skill, or ingenuity to achieve a goal or overcome an obstacle.

Rationalizing

The cognitive process of making something appear reasonable or acceptable, often as a way of justifying one’s behavior or decisions.

Inconsistency

The quality of being inconsistent; not staying the same throughout.

Belief

An acceptance that something exists or is true, especially without proof, or the mental acceptance of and conviction in the truth, actuality, or validity of something.