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:

Anterior Skin

The front surface of the skin, particularly referring to the aspect that faces forward or is most visible in standard anatomical position.

Posterior Skin

The skin located on the back side of the body, covering areas from the back of the head to the heels.

Visual Acuity

The sharpness of vision, measured by the ability to discern letters or numbers at a standardized distance.

HEENT

An acronym for Head, Eyes, Ears, Nose, and Throat, a common organizational structure for a portion of the physical examination.