The Most Important Difference Between the 'Quick' and 'Current' Ratios

question 18

Multiple Choice

The most important difference between the 'quick' and 'current' ratios, in assessing an entity's short- term debt paying ability is:

• A) the inclusion of current receivables in one and not the other.
• B) the inclusion of inventory in one and not the other.
• C) the inclusion of prepayments in one and not the other.
• D) the inclusion of cash at bank in one and not the other.

---

Definitions:

Tool For Empowerment

A resource, technique, or strategy used to increase an individual's or group's power and control over their own circumstances.

Current Criticism

Present-day evaluation or analysis of a work, idea, or system, often focusing on its faults and merits.

Lewin Change Model

A model of organizational change that suggests change involves a process of unfreezing, changing, and refreezing to make new behaviors stick.

Personal Loss

The experience of losing something significant to an individual, such as a loved one, job, or sense of security, leading to emotional distress.