Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A) The smaller the current ratio the more liquid the firm.
• B) Since inventory is not as liquid as the other current assets it is excluded in calculation of the quick ratio.
• C) A current ratio of greater than one indicates net working capital is negative.
• D) In firms with inventory the quick ratio will always exceed the current ratio.
• E) A current ratio can be less than zero.

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Definitions:

Deep Breathing

A relaxation technique involving intentional, deep inhalations and exhalations, which can reduce stress and improve lung function.

Mind-body Techniques

Practices that focus on the interactions between the brain, mind, body, and behavior to use the mind's capacity to affect physical health.

Yoga Practice

A physical, mental, and spiritual discipline originating in ancient India, involving specific body postures, breathing techniques, and meditation for health and relaxation.

Controlled Breathing

A technique involving conscious, intentional regulation of breath to improve physiological and psychological well-being, often used in stress management.